<![CDATA[McManus & McManus, P.A. - Attorneys & Counselors at Law

<![CDATA[McManus & McManus, P.A. - Attorneys & Counselors at Law - Blog]]>Sat, 14 Mar 2026 19:18:32 -0400EditMySite<![CDATA[Good to Know...]]>Fri, 18 Sep 2020 14:24:30 GMThttps://www.mcmanusestateplanning.com/blog/good-to-know

Read Our Informational Blog Topics. To Discuss Please Contact Us.

]]><![CDATA[Beginning the Process of Estate Planning - 5 Vital Steps]]>Wed, 10 May 2017 04:00:00 GMThttps://www.mcmanusestateplanning.com/blog/beginning-the-process-of-estate-planning-5-vital-steps

Once in the process estate planning begins we tell our clients...

They need a team of advisors: their lawyer, their accountant, and their financial advisor. These advisors need to know who each other are and cooperate with each other in the client’s best interest. These people need the current documents.
The people the client has named as their power of attorney, healthcare surrogate, personal representative under their will, and successor trustee of their trust should receive copies of the documents in which they are named. Further these helpers need to have an explanation describing what their responsibilities are and what they are expected to do.
(Review of 1st Step): They need a team of advisors
(Review of 2nd Step): The named power of attorney should receive copies of the legal documents
When disability or incapacity occurs, the responsible family member or appointed power of attorney needs to know what to do. If a trust is part of the estate of a disabled person, the successor trustee(s) need to know what their responsibilities are and what they must do.
When death occurs, family members need to know who has responsibility to take action, what action(s) to take, how to identify what assets are owned by the decedent, the value of the assets owned at the date of death, and who will own what assets after death. Further, who is responsible to provide information to family members or other named beneficiaries, what is the correct information to provide and who is responsible to hold assets, account for them, file tax returns, and pay outstanding bills. These activities required after a client’s death are referred to as estate settlement, trust settlement and sometimes will and probate settlement. We are heavily involved in these activities and assist clients and their family members in handling the follow through with transfer or re-registration of assets, discuss what claims, expenses, and taxes must be paid, and what the most efficient, legally required, and least expensive process is to accomplish this.
Estate Planning is not a transaction, it is a process in which every two to three years:
a. Read your power of attorney, will, trust, and living will documents carefully and verify that the people named are still able to serve and provisions providing for you are still appropriate.
b. If changes have occurred, address these issue through amendments or updated documents. Document that you have done this and when you have done it. Notify these reviews and changes to your follow up people, power of attorney, successor trustee, or personal representative named in your will.

]]><![CDATA[Where are You at 50 Years of Age?]]>Sat, 06 May 2017 04:00:00 GMThttps://www.mcmanusestateplanning.com/blog/where-are-you-at-50-years-of-age

These working parents have children ages...

... 8, 17, and 22 and have now reached 50 years of age. By this time, this couple has been working since they were married at 22, each have IRA accounts. They own a home valued at 485,028 but still have an $18,000 Mortgage. They have jointly owned CD’s totaling a value of $650,000. By the time one or both individuals are 50 years old, this couple has had a lawyer who prepared wills for them, a power of attorney and a living will last updated twelve years ago.

They have been disappointed with those investments. They are not aware what a financial advisor is or what to do next. They have an accountant who has prepared their tax returns for more than 20 years.

Our couple here does not have a team of advisors. Their estate planning documents are at least 12 years old. They were done before all their children were born. They need to find out if the lawyer who did the documents knows anything about estate planning. How would they find out? They could contact and ask him. They could inquire about him from the local Bar Association or ask other lawyers.

If you are looking for an estate planning lawyer inquire at the local Bar Association, get references from banks who have Trust departments, get references from local accounting firms. Also check with the state Bar Organization. Ask if there are specialized lawyers who practice estate planning in your area. Florida has a certification qualification test to certify Wills, Trust, and Estate Administration Attorneys.

The couple must choose a qualified Financial Advisor familiar with estate planning and a qualified CPA or accountant who is familiar with estate planning. Ask them if they will agree to meet together at one of their offices for a courtesy meeting and agree how each of them will accomplish setting up a very good estate plan for our client couple.

The team of advisors is crucial for the individual who just turned 50. The individual is close enough to retirement that investment strategies need to be reviewed with the financial advisor. There is enough time before retirement that the client can prepare himself or herself for sustainable income and assets to last through their many years of retirement. Their attorney needs to review the legal impact that their projected asset and income levels will have during their lifetime, and plan for desired distributions after his or her passing. This milestone may create changes in the individual’s annual tax reporting depending on the changes made through the other two team members. The accountant needs to be able to understand the goals being achieved so that he or she can properly reflect its impact on the individual’s annual tax filings. (Published 09/05/2012)

]]><![CDATA[Joint Ownership: Pros ans Cons]]>Fri, 05 May 2017 04:00:00 GMThttps://www.mcmanusestateplanning.com/blog/joint-ownership-pros-ans-cons

Joint Ownership, under Florida law...

Joint Ownership, under Florida law, real or personal property owned by husband and wife in both names is a tenancy by the entireties. This ownership also has the characteristics of a joint tenancy with right of survivorship. Therefore, when husband and wife take title in both names, and one of the parties dies, title and ownership vest immediately in the surviving spouse. It is for this reason that joint ownership is used as an inexpensive and convenient substitute for a Will.

Joint Ownership Pros
Parties other than husband and wife who wish to create a survivorship joint ownership (tenancy) on their estate planning documents, must be sure that title is taken in both names followed by the words “as joint tenants with right of survivorship, and not as tenants in common.” The reason for this requirement is that Florida Law states that unless the intention to create a “joint tenancy with right of survivorship” is specifically stated a tenancy in common is presumed.

A tenancy in common is ownership by two or more persons where the interest of a deceased co-tenant passes as a part of his probate estate to his heirs or the beneficiaries of his will, rather than to the surviving co-tenants. It can be seen, therefore, that a tenancy in common will not avoid probate.

A separate rule applies in the case of bank and savings and loans joint accounts. Florida law provides that bank or savings and loan association accounts registered in the name of two or more persons being payable to the order of one or more of them, or the survivor or survivors shall, upon the death of one party, be the property of the survivor or survivors in the absence of fraud or undue influence.

The popularity of survivorship joint ownership (accounts) may be attributed to their use to provide convenient joint access to funds and to avoid probate. However, joint ownership can be a problem for assets other than bank and savings and loan accounts. In the case of stocks, bonds and real estate, the signatures of both joint owners is required in order to sell or transfer the asset. If, through accident or illness, a joint owner of these assets looses the ability to sign his name, it may become impossible to sell or transfer the asset without the court appointment of a guardian.

Joint Ownership Cons
A potential pitfall of joint ownership is the possibility of estate taxation. In the case of husband and wife, upon the death of one spouse, one-half of the jointly owned property will be accountable for estate tax purposes in the estate of the spouse who dies first. ‘Survivorship’ has passed ownership of the deceased spouses one-half interest of joint property to the surviving spouse. On the death of the second spouse, the entire value of the property will be taxable for estate tax purposes.

On the death of a joint owner who is not a spouse, the presumption is that the party who dies first furnished all the consideration for the purchase of the asset and the entire value of the asset will be accountable for estate tax purposes in that party’s estate. The surviving joint tenant must offer proof of his or her contribution in order to overcome the presumption and reduce the value accountable in the estate of the deceased joint owner. Upon the death of the surviving joint owner, the entire value of the property will be taxable for estate tax purposes.

Another potential pitfall stems from the fact that jointly owned property passes outside the provisions of a Will. People often provide in their Will that property is to be shared equally but place some assets in joint ownership. Those assets pass to the surviving joint owner who has no legal obligation to share or account to the beneficiaries under the Will.

It takes thought to create estate planning documents that take advantage of joint ownership opportunities while avoiding pitfalls. (Published 04/05/2012)

]]><![CDATA[The Florida Power of Attorney Act]]>Thu, 04 May 2017 04:00:00 GMThttps://www.mcmanusestateplanning.com/blog/the-florida-power-of-attorney-act

The Florida Power of Attorney Act is described...

The Florida Power of Attorney Act is described in Florida Statutes chapter 709. This document is signed by a “principal” who appoints an “agent”. The “agent” is granted authority in place of the principal as described and explained under the power of attorney document.

Durable power of attorney means that a Power of Attorney is not terminated by the principal’s incapacity.

We recommend that the durable power of attorney be used in two ways, first to manage financial assets and pay bills, and second, make personal health care and medical decisions.

If the principal who signs the Durable Power of Attorney chooses a person as an agent who will serve both as financial, health care, and personal decision manager these provisions may be included in one document. If a decision manager for financial and management decisions is different than the decision maker to handle personal and medical decisions then two separate documents would be necessary.

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