Fort Myers, FL Estate Planning Attorney, Wills Trusts, Asset Protection Lawyer, Dorcey Law Firm, Ft Myers, Florida

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Fort Myers Estate Planning Lawyer Shares Ways to Help Parents with Finances

23 Feb

Many Americans with children still at home find themselves becoming part of what is known as the sandwich generation – raising children while also being a caregiver for aging parents.

One of the most important ways you can help your aging parents is to safeguard their retirement savings by helping them find better ways to manage those precious resources. You should pay particular attention to:

Medicare supplemental coverage. If your parents are on Medicare, you should review with them their supplemental coverage, including gap coverage (if they have chosen this option) and their prescription drug plan. Many seniors are uncomfortable navigating the Internet for choices, but the Medicare website (www.medicare.gov) has a useful plan finder you can use to navigate the many choices.

Retirement account distributions. If your parents have IRAs and other qualified retirement accounts that require them to take a minimum distribution once they reach the age of 70 ½, they must do so each year by Dec. 31 or face up to a 50 percent penalty. You can contact the plan administrators to set up an automatic deduction every year to avoid this problem.

Estate planning. Your parents should have an up-to-date will, powers of attorney and other estate planning documents in place already. If they do not, it would be wise to schedule an appointment for you and them with a Florida estate planning attorney, many of who offer a free initial consultation to help you ascertain what is needed.

The Dorcey Law Firm, PLC is a Florida Estate Planning, Asset Protection and Business Planning law firm with offices in Fort Myers, Florida and Naples, Florida. Our firm is dedicated to its clients, the rule of law and the betterment of the Southwest Florida community.

It is our goal to provide our clients with the highest level of legal services in the areas of Last Will and Testaments, Living Trust, Irrevocable Trusts, Estate Planning, Asset Protection, and complete Business Planning. If you or someone you know needs information on Florida estate planning, please contact us today to schedule your free consultation.

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Posted in Florida Elder Law, Florida Estate Planning, Florida Trusts, Fort Myers Estate Planning, Retirement Planning

Fort Myers Estate Planning Attorney Outlines Legal Protections for Those Who Live Together

22 Feb

The 2010 U.S. Census recorded the largest number of couples living together without marriage than ever before. Which is why it is important for unmarried couples to understand what steps should be taken to protect their interests in case of a break-up.

If you decide to buy a house together, you should also decide on how you want to own it. No matter who pays for it, the house belongs to whoever is listed on the title. You may want to consult with a Florida estate planning attorney to discuss your options for protecting your ownership interests, including joint tenancy, trust or contract.

If you plan for your unmarried partnership to continue for a long time, then there are other estate planning issues to visit, including a Florida last will and testament, durable powers of attorney, health care directives and trust instruments for asset protection.

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Posted in Basic Asset Protection, Florida Estate Planning, Fort Myers Estate Planning

Make Sure You Have a Florida Last Will & Testament If You Own a Business

21 Feb

Florida estate planning professionals advise that you make a will if you own anything – but it is especially important to make a will if you own a Florida business.

If you are the sole owner of a business and do not name a new owner in your will, once you are gone, the state can make that decision for you. If you are married with children, then the business will likely go to them. If you are single with no children, your business would likely go to your siblings or surviving parents.

Savvy business owners will likely have already met with their Florida business planning lawyer or estate planning attorney to work out a business succession plan. If family members are already involved in the business, you may have considered selling shares in the business to a defective trust to benefit children and grandchildren.

Making a will also enables you to designate an executor to carry out your wishes for both your personal and business assets. In addition, you can use a will to name a trustee to manage the business assets for minor children, until they become of age and can take over the reins.

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Posted in Business Planning, Florida Estate Planning, Florida Last Will and Testament, Fort Myers Estate Planning

Fort Myers Estate Planning Lawyer Lists 5 Top Excuses for Not Planning for Retirement

20 Feb

Planning for retirement entails saving for retirement…and too many of us have plenty of excuses why we’re not doing either. A Bankrate.com article lists the top excuses for not saving for retirement:

College expenses. Paying for your children’s – or even grandchildren’s – college education is a noble goal, but only if you have enough already socked away for retirement. College loans are obtainable; retirement loans are not.

Early mortality. Some people figure that since their parents may have died young, they will too, so no need to save as much for retirement. But medical advances and better health overall for many Americans make dying young a poor way to plan.

Social Security. Many believe they can live on Social Security alone, but current projections show that reserves will run out in 2037 and projected tax income will only cover three-fourths of benefits for future generations. Plus, the average monthly Social Security benefit today is only $1,172 – not much to live on in today’s economy.

Stay employed. While more of us are working longer, there is no guarantee that your health or the job market will support your desire to stay employed once you reach retirement age.

Current expenses. Many of us suffer from overextended finances and put off saving for retirement to meet today’s needs. Cutting back and sticking to a budget may mean the difference between a manageable or meager retirement.

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Posted in Florida Estate Planning, Fort Myers Estate Planning, Retirement Planning

Fort Myers Estate Planning Lawyer Shares Long-Term Care Planning Considerations

17 Feb

Currently, one in five Americans experiences the need for long-term care, and as baby boomers age, that number is anticipated to increase substantially.

Medicare currently will cover long-term expenses for those over 65 for the first 100 days of care. If you do not qualify for Medicaid, you will be responsible for covering the entire cost – which is why planning for long-term care before you need it is critical. Factors to consider include:

Age. Many planning experts say the best time to obtain long-term care insurance is 20-25 years before you need it. Your premiums will be lower if you start early.

Elimination period. A majority of people choose to begin receiving their long-term care benefits once their Medicare coverage is exhausted, but you can delay the start of benefits for any length of time.

Benefit period. Many people select a five-year benefit period, since studies show the average long-term care need is 2.5 years.

Benefit amount. You will have to choose the daily benefit amount you want when you purchase your long-term care policy – the average daily cost of a private room in a nursing home currently averages $235, according to John Hancock’s 2011 Cost of Care Survey.

Inflation rider. Be sure your policy provides enough coverage to make your daily benefits sufficient when you need them years from now.

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Posted in Florida Elder Law, Florida Estate Planning, Fort Myers Estate Planning

Fort Myers Business Planning Attorney Shares Top 10 Small Business Tax Deductions

16 Feb

Auto expenses. If you use your personal car for business, or if your business owns a vehicle, you can claim expenses in one of two ways: actual expense (keep good records) or standard mileage rate (51 cents for 2011).

Operating expenses. Advertising, utilities, postage, office supplies – everything you use in running your business can be deducted as a current business expense. If you started a business in 2011, you can only deduct $10,000 for the first year – anything over that must be deducted in equal amounts over the next 15 years.

Legal and professional fees. You can deduct any fees paid to attorneys, tax professionals or consultants as well as the purchase price of any business books.

Bad debt. If you sell a product, you can deduct the cost of goods that you sold but were not paid for – if you’re in a service business, you cannot get a deduction for any time you spent on a client that you were not paid for.

Entertainment. You can deduct half the cost of entertaining a client or prospect if business was discussed, or if the entertainment occurs immediately before or after a business function.

Travel. Plane fare, baggage fees, airport parking, taxis, mileage, lodging, meals, shipping business materials, telephone calls, faxes, tips, etc. – all are deductible if the purpose of your trip was business.

Interest. If you use a business credit card to finance purchases for the business, you can deduct the interest and carrying charges.

New equipment. In 2011, you can deduct up to $500,000 of the cost of qualifying new and used equipment.

Software. You can deduct 100 percent of the cost of off-the-shelf software that was installed by the end of 2011.

Taxes. What’s deductible: sales tax on items bought for the business, excise and fuel taxes, employer’s share of employment taxes, real estate tax on business property. What’s not deductible: federal tax paid on business income.

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Posted in Business Planning, Florida Estate Planning, Tax Planning

Fort Myers Estate Planning Lawyer Shares 5 Biggest Myths About Retirement

15 Feb

A Fort Myers estate planning attorney recommends that those getting ready for retirement consider these 5 myths when doing financial planning:

1. You Will Spend Less Once You Retire. Studies show that Americans over the age of 65 spend almost 95 percent of their income, compared with 78 percent for the average American under the age of 65. After retirement, spending on travel and entertainment often increases significantly, which more than offsets the drop in spending on education and pension contributions.

2. You Can Count on Uncle Sam. Recent studies show that most people approaching retirement have no idea how much Medicare does NOT cover – like dental, eye care and some prescriptions. The government rarely covers home health care or nursing homes, which can take a big bite out of retirement budgets.

3. If You Move, Your Money Will Last Longer. Retirees who flock to non-income tax states like Florida, Texas or South Carolina find that sales and property taxes are generally higher – and increasing to meet state budget shortfalls.

4. You Need to Invest More in Bonds. Traditionally, the older an investor got, the more of his or her portfolio was put into more stable bond funds. However, with bond prices now near record highs, high-dividend stocks, commodities and other alternative investments may be a better choice.

5. The Magic Number is $1 Million. It’s not so much about the number, but how you arrive at it that matters in the end. Many retirees find that they have not accurately estimated or planned for unexpected expenses, liking taking care of an aging parent or an unemployed child. Advisers are now telling clients to think of their number as a baseline, not an absolute.

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Posted in Florida Estate Planning, Florida Last Will and Testament, Retirement Planning

Fort Myers Estate Planning Attorney Notes AARP Study Showing 1 in 3 Florida Seniors Lives on Social Security Alone

14 Feb

According to the American Association of Retired Persons (AARP), one in three Floridians say that monthly Social Security benefits are their sole source of income and another 60 percent rely on Social Security for more than half of their income.

Nationally, just about one-quarter of those over the age of 65 depend solely on Social Security; Florida is higher than the national average because of its larger population of advanced age seniors. In Florida, there are 800,000 residents over the age of 80 and almost 3,500 who have passed the century mark. Florida is second only to Fort Myers in the number of advanced age seniors, but with half the population of Fort Myers, it ranks highest by percentage.

The biggest challenge for advanced age seniors is meeting unexpected expenses – not just medical, but the increasing cost of living at home: household repairs, higher property taxes and condo fees and higher home insurance premiums.

A Fort Myers estate planning attorney can assist Florida residents with estate planning and asset protection strategies so your retirement years don’t have to be a struggle.

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Posted in Florida Elder Law, Florida Estate Planning, Retirement Planning

Fort Myers Estate Planning Lawyer Details 2012 Changes in Social Security

13 Feb

For the first time in three years, Florida residents receiving Social Security benefits will see an increase in those payments of 3.6 percent – an average of an additional $43 per month, according to a news report.

Medicare Part B premiums have also risen, and may take a bite out of that increase, however. Here are some additional changes to Social Security in 2012:

Higher tax cap – the cap on earnings that are subject to Social Security taxes has increased to $110,100 in 2012, from $106,800 last year.

Temporary extension of Social Security tax holiday – in 2011, employees received a two percent payroll tax cut, which has been extended to Feb. 29, 2012.

Higher earnings limits – retirees who continue to work while collecting Social Security benefits can earn up to $14,640 in 2012 if they are below full retirement age, after which 50 cents of every dollar earned over that will be deducted from their monthly Social Security check. For retirees who turn 66 in 2012, the limit increases to $38,880, after which 33 cents of each dollar earned over that will be deducted from monthly benefits payments.

Increase in maximum benefit – the maximum possible Social Security monthly benefit increases in 2012 to $2,513 per month, an increase of $147 from 2011. To qualify for the maximum amount, a worker would have to earn the maximum taxable amount ($110,100) every year after the age of 21.

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Posted in Retirement Planning, Social Security

Fort Myers Estate Planning Lawyer Says Take Advantage of 2012 Tax-Saving Opportunities Now

10 Feb

The tax-saving provisions passed in the Tax Act of 2010 will expire at the end of this year (unless Congress extends), and when that happens, one of the greatest opportunities in recent history to pass wealth down in a highly advantageous manner will be gone. As a Fort Myers estate planning attorney, I advise clients to review and evaluate the estate planning opportunities that remain open to them in 2012, including:

Gifts – in 2012, an individual may gift up to $5.12 million without incurring estate tax; for couples, that amount can double to $10.24 million via gift-splitting. The gift tax rate in 2012 is 35 percent, which will increase to 55 percent on Jan. 1, 2012 barring Congressional action. That extra 20 percent in gift tax increases the cost of gifting by $1 million, so if you are considering a property transfer to family, sooner rather than later is better.

GRATs – A grantor retained annuity trust (GRAT) allows you, the grantor, to transfer future appreciation of the trust’s assets to children with minimal tax cost while still receiving annual annuity payments over a fixed term. Currently, that term can be as short as two years; however, changes to the GRAT are in the offing, and current low interest rates make establishing a GRAT a good idea.

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Posted in Federal Estate Tax, Florida Estate Planning, Florida Trusts, Gift Tax, Tax Planning

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