Naming Your Beneficiaries: What If?
Published on: Mar 3, 2016
Transcripts - Naming Your Beneficiaries: What If?
99 Nesbit Street 33 S. Indiana Ave. Punta Gorda, FL 33950 Englewood, FL 34223 TEL 941.639.1158 TEL 941.460.9334 F A R R , F A R R , E M E R I C H , H AC K E T T AND C A R R , P. A . 1924 FAX 941.639.0028 FAX 941.460.9443 Newsletter Big City Solutions. Small Town Values. February 2012Naming Your Beneficiaries: What If?Estate planning documents, such as wills and trusts, give you theopportunity to name your beneficiaries, that is, who will receive yourproperty after you pass. You may choose to leave your property toyour surviving spouse, to your children, to make gifts to charities,or a mix of these options. After you decide what you want todo, you meet with an estate planning attorney and are asked the“What If” question: What If your child or your intended beneficiarypredeceases you?When you put your plans in writing it is important to ask “WhatIf” questions. Some people are uncomfortable addressing estate Dorothy L. Korszenplanning issues, even though they accept being mortal. Similarly, TEL 941.460.9334after signing a will or trust, there might a reluctance to remove EMAIL firstname.lastname@example.org documents from a safe deposit box and review them on Dorothy’s practice focusesregular basis. Family situations do change over time and the original on trusts and estates, realdocuments may no longer reflect your wishes. estate, and business and corporate law.This is where the “What If” questions come in handy. In yourdocuments, you can say what you wish to happen if you provided agift to a child and your child predeceased you. You could allow thatgift to go to the child’s spouse, or to your grandchildren. Or, youmay prefer to let that child’s gift lapse, meaning not be given, andinstead have that property go to your other surviving children.You may choose to leave gifts to your children, per stirpes. Thismeans that if a child predeceased you, then that child’s children— Asset Protection Business & Corporate Elder Law Guardianship Litigation Marital & Family Mediation Personal Injury & Wrongful Death Physician Services Real Estate & Title Insurance Trusts & Estates
99 Nesbit Street 33 S. Indiana Ave. Punta Gorda, FL 33950 Englewood, FL 34223 TEL 941.639.1158 TEL 941.460.9334 F A R R , F A R R , E M E R I C H , H AC K E T T AND C A R R , P. A . 1924 FAX 941.639.0028 FAX 941.460.9443 Newsletter Big City Solutions. Small Town Values. your grandchildren—would receive his or her share. Under Florida law, if you do not specify what will happen if a descendant predeceases you, then that gift will automatically pass, per stirpes, to that child’s children. However, if the beneficiary is not a descendant, for example, if he is a step child, then the gift would lapse and be distributed to the other beneficiaries, unless you specified otherwise. With blended families, this may not be the intended outcome. A sample of other “What If” questions are: (1) if your grandchildren will be receiving gifts, would you like to hold the gifts in trust until they reach a certain age? (2) who would you like to manage any gifts held in further trust, and under what terms? (3) who are the back ups in the event the person you wish to serve as your personal representative is unable to serve? (4) would you still wish to make a gift to an in-law if the in-law was no longer married to your relative? (5) how would you like a gift to charity be distributed if that particular charity were no longer in existence? There are many issues to consider when creating your estate planning documents. A thorough discussion of possible outcomes will help them to be addressed in your documents. Even so, it is important to review your documents every few years, and especially when there has been a change in your circumstances to see whether your documents still reflect your wishes. This newsletter is for general information and education purposes only. It is not offered as legal advice or legal opinion.To the extent this message contains tax advice, the U.S. Treasury Department requires us to inform you that any advice in this letter is not intended or written by our firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under theInternal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity, investment plan or arrangement to any taxpayer. To subscribe to our monthly newsletters, please visit our website at www.farr.com Asset Protection Business & Corporate Elder Law Guardianship Litigation Marital & Family Mediation Personal Injury & Wrongful Death Physician Services Real Estate & Title Insurance Trusts & Estates