Florida Tax Planning: Memo on Foreign Tax Compliance

Recently, I wrote a memorandum to outline the tax compliance matters you will need to attend to regarding the estate planning or corporate work we have structured for our clients. (Click here to read the entire memo.)

Upon the creation of a foreign trust or other type of entity (including but not limited to a foreign corporation), or a domestic trust which contains provisions to become a foreign trust, and at other intervals during the existence of those trusts, there are various informational and tax return filing requirements imposed by the Internal Revenue Service (“IRS”) on the parties connected to the trust or other entity. This memorandum briefly explains the various potential filing requirements for a foreign trust, foreign corporation, or other type of foreign business entity, as well as for a settled trust that may in the future become a foreign trust. This memorandum is not intended to take the place of competent advice from an accountant, tax return preparer, or other tax professional experienced in the filing of tax and informational returns relating to international transactions, but only to put you on notice of filings that may be required. Failure to comply with these reporting requirements may subject the fiduciary, grantor, settlor, and/or the beneficiary(ies) to possible civil penalties, and in some cases, if the failure to file is intentional, criminal penalties. It is highly recommended that professional advice be sought and adhered to in complying with the IRS requirements regarding your activities.

Click here to read the memo.

--Stuart Morris, Esq.

Florida Probate With Living Trust: Is Probate Required?

Is Florida probate required if the decedent had a living trust?

Most people do not transfer all of their assets into a Florida Revocable Trust prior to their death. If their home, or other personal property was not transferred into the trust prior to their death, a Florida probate may still be required to properly dispose of the remaining assets. Often bank accounts, IRA's, land, business interests, or other assets are not transferred property.

The probate will typically take the remaining assets and follow the instructions of the Florida Will to distribute them. If the will directs the assets to a trust it is called a pour-over will.

What happens if the Florida will directs the assets to a non-existent trust. Unless the Florida will contemplates this, the assets will be transferred by the residuary clause in the will or in the case that this does not exist, they will transfer under the Florida intestate statutes or as if there was no will.

If you are looking to find out about Florida beneficiary rights, or how property should be transferred in a Florida probate, contact a Florida Estate Planning Attorney.

Florida Estate Planning: Fraudulent Seminars

It seems like ever few months we hear about another company who provides living trust seminars to the public and scares them into purchasing unnecessary trusts.

Another "Trust Mill" has been found guilty of practicing law without a license by masquerading as qualified financial advisers, estate planners, lawyers, and paralegals to exploit and prey upon senior citizens with the creation and selling of unnecessary and often useless living trusts.

In this case The Estate Plan, a company operating in Texas and Arkansas, was hit with a $16 Million default judgment for fraud, unauthorized practice of law, negligence, breach of fiduciary duty and conspiracy.

As always, when searching for a Florida Estate Planning attorney, choose one with a credible reputation and one with lots of experience in Florida Trusts.

Trustee's Duty to Disclose

Gerry Beyer has an article on a Trustee's Duty to Disclose and the rise in Surcharge Litigation. Dana G. Fitzsimons Jr. recently published an article - Navigating the Trustee's Duty to Disclose, Prob. & Prop., Jan/Feb 2009, at 40.

If you are managing wealth for your children, this should be a concern for you. As a Florida Trustee, it is important to avoid potential liability to your children. Always consult with a Florida Trust Attorney to adequately plan your trusts.