Florida Probate Litigation Lawyer Blog

Disclaiming an Inheritance

April 17, 2013 | by Bart Chepenik

A person may want to disclaim an inheritance or gift in order to maximize gift and estate tax exclusions, or simply because he or she does not want the property and/or the resulting tax burden. A disclaimer is a refusal to accept an interest in the power over property, including a power of appointment. Fla. Stat. § 739.102. A person can disclaim property or an interest in property in whole or in part, and may make the disclaimer conditional or unconditional. Through the use of a disclaimer, beneficiaries may take a retrospective look at the decedent’s estate plan, and determine whether, based on current circumstances, there is a more advisable way to distribute assets.
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Litigation Over Trust Accountings

April 10, 2013 | by Bart Chepenik

Florida law mandates that a trustee keep the qualified beneficiaries of a trust reasonably informed of the trust and its administration. Fla. Stat. § 736.0813. This imposes a duty on the trustee to provide a trust accounting annually to each qualified beneficiary of an irrevocable trust. A trust accounting is required to include information regarding significant transactions affecting the trust administration during the accounting period, compensation paid to the trustee, gains and losses realized during the accounting period, and, to the extent feasible, the value of trust assets, among other things. Fla. Stat. § 736.08135. If the trustee fails to provide annual accountings to the qualified beneficiaries, the qualified beneficiaries may have a breach of trust action against the trustee. Fla. Stat. § 736.1001. However, if the trustee has provided the qualified beneficiaries with a trust disclosure document (including an accounting), then there may be a statute of limitations that affects the qualified beneficiaries’ claim against the trustee. If the trustee has provided an accounting, and the qualified beneficiary believes he has a cause of action based on that accounting, then the qualified beneficiary must make an objection within 6 months. Fla. Stat. § 736.1008.
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Who is an Heir under Florida Law?

April 2, 2013 | by Bart Chepenik

When a decedent passes away, individuals who are named in the decedent’s will are entitled to receive property as it is specifically devised in the will. Moreover, when a decedent dies in possession of property that is not devised in his or her will, that property passes through intestacy (i.e., outside of the will). But, who is entitled to receive that property? Who is considered an “heir?” How does one find out if he or she is an heir or beneficiary?

Under Florida law, “heirs” or “heirs at law” are those persons who are entitled to the estate of a decedent under the statutes of intestate succession. Fla. Stat. § 731.201(20). In Synder v. Davis, the Supreme Court of Florida interpreted the term “heirs” in Article X of the Florida Constitution to include not just family members who would take property at the death of the decedent, but also those who could take under intestacy statutes. Effectively, the Florida Supreme Court interpreted the word “heirs” broadly to include all potential takers under the intestacy statutes.
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A Lesson from Sir Peter Ustinov: The Importance of Maintaining a Current Will

March 27, 2013 | by Bart Chepenik

Sir Peter Ustinov, a famous English actor, columnist, and UNICEF Ambassador, passed away on March 28, 2004. Despite the fact that he died nearly 10 years ago, his estate still has not been settled. Sir Ustinov had been married three times, and had four children at the time of his death. He was estimated to be worth tens of millions of dollars. Sir Ustinov’s most recent will at the time of his death was 36 years old and written in pencil. Because the will was so outdated, the Swiss court that has jurisdiction over Sir Ustinov’s estate ruled that he died intestate. As a result, under Swiss law, his estate would pass to his widow. Since the decision that Sir Ustinov died intestate, there has been a battle over his estate. Specifically, Sir Ustinov’s son, (who was the heavily favored heir in the hand-written will that was rejected by the Swiss court), contends that Sir Ustinov set up trusts that held most of his assets (and whose whereabouts are known only by two retired Swiss lawyers) that should pass to Sir Ustinov’s children. This battle has resulted in the parties amassing a large bill for attorneys’ fees and is suspected to have eaten away most of Sir Ustinov’s once vast estate. Sir Ustinov’s son-in-law has stated that due to the costs of the litigation, there is little left to fight over. The son who is pushing the litigation recently admitted that he is nearing bankruptcy as a result of the legal fees he has incurred. Even an English High Court Judge has stated that she is appalled by the money that the family has spent fighting over the estate.
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Refusing to Appoint a Named Personal Representative

March 19, 2013 | by Bart Chepenik

The administration of an estate is never as simple as it seems, even when there is a will. Often, issues arise with the Personal Representative of the estate, such as a dispute over who the Personal Representative should be or a question of the Personal Representative’s actions or ability to administer the estate. In situations where a named Personal Representative is either unqualified to represent the estate under Florida Statute Section 733.301 or is unfit to represent the estate because they have an adverse interest or are mishandling estate assets, there are ways to remove the Personal Representative and appoint a successor. However, what happens in a situation where courts find that neither party is fit to be the Personal Representative of an estate?

Curators are appointed by probate courts when there is a problem with the Personal Representative of an estate. The curator is an independent third party who administers the estate. The use of a curator arises most often when a decedent dies intestate and there is a conflict over who should serve as the Personal Representative of the estate or when the Personal Representative of the estate is unfit to perform their duties. Most often, issues surrounding the appointment of a curator arise in the context of a decedent that passes away without a will. However, problems can also arise when there is a will that specifically names a Personal Representative of an estate, but an interested party seeks to have a curator appointed instead.
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Settlement in Guardianship Litigation

March 13, 2013 | by Bart Chepenik

Children worry about their elderly parents, particularly when the parents begin new relationships. Children may be particularly worried when their parent gives or loans money to a new significant other. This sometimes leads to children seeking to have a parent declared incapacitated, thereby preventing the parent from having control of his or her financial affairs. This was the case in Jasser v. Saadeh, 97 So.3d 241 (Fla. 4th DCA 2012). In that case, Mr. Saadeh, an 80-year-old-man, loaned money to a new girlfriend that he met after the death of his wife. When his children found out, they sought to have their father declared incapacitated. After the children filed for a determination of incapacity, a settlement agreement was reached, in which Mr. Saadeh signed a trust agreement that put his belongings into an irrevocable trust, for which he was the sole lifetime beneficiary, with his children as the remainder beneficiaries. Mr. Saadeh was told that if he signed the document, the proceedings would be over. However, after the settlement order was entered into, and based on reports that Mr. Saadeh was not in fact incapacitated, the court questioned whether the settlement was valid. Mr. Saadeh retained counsel and contested the formation of the trust. The court ultimately found that the trust was void, and Mr. Saadeh’s assets were returned to him.
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Making Remittances to Cuban Nationals

March 6, 2013 | by Bart Chepenik

Until the last two years, it has been illegal in the United States to make remittances to any Cuban nationals. The United States put an embargo in place as a sanction against Cuba in the 1960s, which was intended to make U.S. dollars inaccessible to the Cuban government. The embargo included a freeze on Cuban assets in the United States, regardless of whether the assets were owned by the government or a private individual. If a Cuban national had any ownership interest in property in the United States, the property was blocked from being transferred. These accounts are called “Cuban Blocked Accounts.” Also, once the sanctions were in place, if a person subject to the jurisdiction of the United States made a remittance to a Cuban national, then he or she would face severe criminal penalties. However, in 2009, President Obama removed certain restrictions affecting relationships between individuals residing in the United States and those residing in Cuba. These policy changes have made it possible to make remittances to Cuban nationals during a person’s lifetime, as well as remittances in the form of an inheritance, subject to certain restrictions.
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Florida’s Pretermitted Spouse Statute

February 27, 2013 | by Bart Chepenik

In today’s always changing and fast moving society, many individuals marry, divorce, and remarry over the course of their lives. Often times, a husband and wife will execute a joint will or separate wills during their marriage, leaving a substantial portion of their assets to one another. But, what is the effect of divorce upon a will if a new will is not executed subsequent to the divorce? Will the ex-spouse obtain assets that he or she was bequeathed or devised in a will executed during the previous marriage? Will the deceased’s current spouse be entitled to any of the deceased’s property that was bequeathed to the former spouse?

The Florida legislature has addressed these concerns in the Florida Statutes. In Florida, under what is known as the “Pretermitted Spouse Statute,” a spouse who marries an individual after that individual has executed his or her will is entitled to receive a share of the deceased individual’s estate equal in value to what the surviving spouse would have received if the deceased had died intestate (i.e., without a will). Fla. Stat. § 732.301. The surviving spouse is entitled to collect his or her pretermitted share from other property that was supposed to pass through intestacy and from property that was devised to beneficiaries under the will. Fla. Stat. § 733.805. The surviving spouse will continue taking devised property from individuals under the will until the pretermitted share is fully satisfied.
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What Happens When Nobody Can Find Your Will

February 21, 2013 | by Bart Chepenik

Even when a person creates a will, it is possible that nobody will be able to find that will when the testator passes away. Fortunately, Florida law allows for the contents of a will or a codicil (an addition, supplement, or amendment to a will) to be proven even if the will cannot be found. Fla. Stat. § 733.207 provides that the contents of a will that was lost or destroyed can be proven if either: (1) two disinterested witnesses testify as to the contents of the will, or (2) a correct copy of the will is provided and one disinterested witness testifies as to the contents of the will.
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The IRS and Your Lottery Winnings

February 13, 2013 | by Bart Chepenik

The odds of winning the recent Power Ball jackpot were somewhere around 1 in 175 million. While the chances of hitting that $575 million dollar jackpot were absurdly low, the odds of winning a smaller jackpot are much less daunting. If you are one of the lucky to hit a lottery jackpot, do not get lost in the excitement. The money is not yours free and clear. All lottery winnings constitute income under the Internal Revenue Code, and, therefore, come with tax implications. Have no doubt, lottery winnings are taxable income, and Uncle Sam needs to get his taste of the action. Lottery winnings are taxed at a marginal rate of 35% to the winner or winners. There can also be gift taxes associated with sharing the winnings with friends, family members, or a group that purchased the winning ticket. Thus, with the excitement of hitting the jackpot, comes the necessity for planning.

How you claim your lottery prize can make a difference. Do you want to take the annuity? Or the lump sum? Do you want to claim the prize personally? Or set up a trust? Or set up a business entity like a limited liability partnership? What happens when there is a group who contributed to the winning ticket?
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