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For many Orlando residents, an  estate plan  is a comprehensive tool they use to make sure their loved ones benefit well after they have died. This security we provide makes us feel good and nurtures a want to be financially responsible. But for some of you, you may soon feel like you are being punished for financial responsibility and care for your loved ones. The newly signed Setting Every Community Up for Retirement Enhancement Act (Secure Act) could negatively affect non-spousal beneficiaries of any retirement plans or individual retirement accounts (IRAs) you may have. These plans are set up both for our own financial security when we retire and for the beneficiaries of these plans should we died before the account is drained of its funding. Many of us intentionally do not use the funds in these accounts for tax reasons but only take out the required minimum distribution (RMD) annually. So, how could the Secure Act impact beneficiaries who inherit your IRAs? Here, we provide an overview. How Does the Secure Act Affect Non-Spousal Beneficiaries of IRAS? Prior to the Secure Act taking effect on January 1, 2020, beneficiaries were required to only withdraw a certain portion of funds related to their life expectancy rate. So, the younger, you were at the time of inheriting the IRA, the longer you could withdraw accounts. This is known as stretching RMDs over a lifetime. The benefit was two-fold: (1) you were able to save money on taxes; and (2) you were able to earn money on the funds in the account. Now, the law requires that any IRA account inherited by a person other than a spouse of the deceased to be drained within ten years and the account to be subsequently closed. This is a stark change from the previous method. Though the new rule is meant to increase tax revenue for the country, it will, in effect, harm those who plan ahead for their loved ones. Are There Exceptions to The New 10-Year Rule? As mentioned, the 10-year rule does not apply to spouses who are named the beneficiary of an IRA. In addition, for anyone who inherited an IRA before the effective date of January 1, 2020, this new rule will not apply. The rule will also not apply to: minor children until they turn the age of majority – then the 10-year rule will kick in ; the chronically ill; disabled persons; and beneficiaries who are younger than the decedent by less than 10 years. The Secure Act, however, isn’t filled with all bad news. The good news is this: The age for RMDs from IRAs had been 70 1/2 years of age, meaning you have to start withdrawing funds at this age – now, for IRAs where the new rule applies, the age for RMDs does not start until you are 72 years old; and So long as you are earning income, you can continue to contribute to your IRA, which wasn’t the case previously. These two changes may indirectly benefit any heirs to an IRA. What Should You Do Now? If you have individual retirement accounts or retirement plans, it is time to revisit them. You may want to  check with an estate planning attorney  in Orlando to make sure your goals for your beneficiaries are still the objective of the plan. Keep in mind, too, that from time to time, laws may again change, so consistent review and update of an estate plan are essential to making sure you leave your loved ones what you intended to leave them in Florida.

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When you have a minor child, you are responsible for that child financially. In a divorce or custody case, one parent may be ordered to pay  child support  to the other parent. The purpose is simple: to help the parent with primary custody pay for essential things the child needs, like: food water shelter electricity These are the bare minimum needs, of course. Child support may also be used to pay for things like extracurricular activities, school fees, and clothing. Whether you are the parent paying or the parent receiving the child support, you may wonder how the determination on the amount is made. The amount is up to the court, but here we discuss four specific factors a court considers when determining child support payments in Florida. Incomes How much do you make compared to the other parent? The court will look at the following – according to  Florida’s Support Guidelines  – to determine gross income: 1. Salary or wages. 2. Bonuses, commissions, allowances, overtime, tips, and other similar payments. 3. Business income from sources such as self-employment, partnership, close corporations, and independent contracts. “Business income” means gross receipts minus ordinary and necessary expenses required to produce income. 4. Disability benefits. 5. All workers’ compensation benefits and settlements. 6. Reemployment assistance or unemployment compensation. 7. Pension, retirement, or annuity payments. 8. Social security benefits. 9. Spousal support received from a previous marriage or court ordered in the marriage before the court. 10. Interest and dividends. 11. Rental income, which is gross receipts minus ordinary and necessary expenses required to produce the income. 12. Income from royalties, trusts, or estates. 13. Reimbursed expenses or in kind payments to the extent that they reduce living expenses. 14. Gains derived from dealings in property, unless the gain is nonrecurring. Monthly income is also considered, especially in regard to unemployed or underemployed parents. The Guidelines also provide a chart that considers the combined monthly net income and the number of children, and this is meant to identify the minimum support a child needs. The chart goes up to $10,000 in monthly net income. For net income greater than that amount, percentages of income set in to determine child support. Once the court knows what the net income is, it can determine what the minimum child support need is. But that does not mean child support will be set at that amount. The court may adjust it for things like healthcare premiums, daycare costs, medical bills, spousal support, and any other credible deduction. Of particular interest to the court are things like custodial parent needs, previous standard of living, and timesharing. Custodial Parent Needs The  custodial parent  is likely to incur more expenses than the non-custodial parent. There are things that always come up, whether it’s day-to-day living or larger one-time expenses. The court will consider the greater burden of finances the custodial parent has versus the non-custodial parent has. Previous Standard of Living The court aims to keep the child at a standard of living comparable to what he or she had experienced prior to a divorce or breakup. When there are two incomes, the standard of living is likely to be better, and so child support payment will consider what amount is necessary to retain some of the same standard of living the child experienced previously. Timesharing How many nights will the non-custodial parent have with the child, or – for that matter – how much time will each parent spend with the child? The parents’ plan on  timesharing  will be reviewed. It is possible that both parents will spend a comparable amount of time while many times, one parent bears most of the responsibility to care for the child. Other Factors There are always other factors specific to the case that may prove important to the granting of child support and the amount the court will order. This includes things like the child’s age, healthcare costs specific to the child, among other reasons. Calculating Child Support in Orlando Florida Once all the above factors are considered, the court will determine what child support should be set as. So, child support is defined clearly in the Guidelines with specific numbers laid out in accordance with net income, but when other factors are added into the equation, the final amount can change. With the help of an experienced child support attorney in Orlando, you can make sure child support is established at an amount right for you and your child(ren). If you have questions,  contact  Veliz Katz Law to get answers.

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During the divorce process, one spouse may fight for  spousal support. If the support is awarded, the paying spouse must comply. In the divorce decree, the parameters of the spousal support are outlined, and this can include the duration of the alimony. It could be only a few years or it could be many years. Regardless of what the duration is, spousal support cannot be modified or terminated early unless certain conditions or circumstances are present. One such circumstance is when the former spouse receiving the alimony cohabitates with another. In Florida, there is a law for this: the Supportive Relationship law. Here’s what you should know about it – whether or not you are the one paying or receiving the alimony payments. What Is Florida’s Supportive Relationship Law? According to  Florida Stat. § 61.14(1)(b) , alimony can be terminated when the receiving spouse (also referred to as payee or obligee), cohabitates or engages in a supportive relationship. This generally means the payee is living with someone as though marriage but absent a marriage certificate. But what constitutes a supportive relationship that would qualify as a reason to reduce or terminate alimony is a question for a trial court to answer. Pursuant to  Murphy v. Murphy , 38 Fla. L. Weekly D2283 (Fla. 3d DCA November 6, 2013) , two considerations must be addressed: Does the cohabitant provide financial support to the recipient ex-spouse; or Does the recipient ex-spouse financially support the cohabitant? If the recipient spouse is engaged in a living arrangement with another person, it is possible the Supportive Relationship law could be invoked successfully. That said, living with another person does not automatically mean a supportive relationship with respect to this law exists. What Constitutes a Supportive Relationship in Florida? A supportive relationship occurs when the relationship: [t]akes the financial place of a marriage and necessarily decreases the need of the obligee.  Overton v. Overton, 34 So. 3d 759, 761 (Fla. 1st DCA 2010)  (quoting French v. French, 4 So. 3d 5, 6 (Fla. 4th DCA 2009)) Financial support is not enough, because an ex-spouse could live with family members and benefit from their financial support. Florida Stat. § 61.14(1)(b), however, requires the financial support to be equivalent to a marriage. Thus, living with a family member who supports the ex-spouse would not qualify as a reason to reduce or end alimony. Only when the ex-spouse is cohabitating, or engaging in a sexual relationship and living with another person as though they are married but do not have a marriage certificate – then the supportive relationship qualifies as a reason to reduce or terminate alimony. The rationale behind this law is simple: more and more people are cohabitating, couples are living together without getting officially married. Alimony typically ends upon remarriage, and so this law closes the gap created when recipients of alimony enjoy a supportive relationship but continue to receive alimony to the detriment of the payor. If you are the payor and want to reduce or terminate alimony based on this cohabitation law, then you have the burden to prove the supportive relationship by a preponderance of the evidence. Your attorney will be thorough in the discovery stage of the process.  Contact us  an experienced divorce attorney in Orlando today if you suspect your ex-spouse may be trying to take advantage of the system while in a supportive relationship.

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A power of attorney (POA) in Florida has many responsibilities when the principal of the power of attorney – the one who appointed the agent to manage his or her financial affairs in the event he or she cannot manage those affairs – becomes incapacitated. Parents often choose one trusted, responsible child to act as the power of attorney. When there is more than one child, however, distrust and disputes can arise. Here’s an overview of what you can do to prevent a dispute among siblings from arising. Communicate Your Florida Estate Plan to Your Children Some people who  create an estate plan , including a power of attorney document, want to keep the plan private. They think this will avoid conflicts from arising. It may do so but only so long as the plan does not come to light or is not executed. Once the parents, for example, become incapacitated, if there is a POA document, then the appointed person will be notified. If it is a child who is appointed as the POA and if there are other siblings, they may become resentful or distrustful. So, conflicts are going to arise at one point or another. Communicating the estate plan, however, can go a long way to preventing disputes as opposed to keeping it secret. When children understand the purpose of the estate plan and your reasons for designating one sibling as the POA over other siblings, then there can be shared understanding and acceptance among siblings. That doesn’t mean this will happen in all cases, but in the majority of cases, communication (and the opportunity to share concerns, ideas, etc.) should be sufficient. Plus, it also provides some level of transparency: the other siblings can check the POA to make sure he or she is conducting financial affairs in accordance with their parents’ wishes. But if no one knew who the POA was and, upon the incapacitation of the parent, the POA is informed and begins executing his or her responsibilities, the POA can legally: open bank accounts; withdraw money; write checks, among other financial tasks; and pay bills. This can become a problem if the POA takes steps to benefit him or herself to the detriment of any siblings. Consider an Alternative to The Designation of One Child as Power of Attorney in Florida There are other options you can consider if appointing one child is an issue. You could either: appoint co-agents, or designate non-family members. If you appoint co-agents, maybe two siblings, this can work only if the document is written and executed properly. You will want to create separate obligations for each co-agent so that responsibilities do not intersect. You also want to designate responsibilities in a way that each co-agent acts as a check on the other. If you choose to designate non-family members, you can find a professional fiduciary (e.g., a bank with trust powers, a trust company, or a certified public accountant). An  attorney who handles estates in Orlando, Florida , can make sure you appoint the right fiduciary for yourself. The advantage to a non-family member as the POA is that he or she has no emotional attachment and can execute duties objectively. Further, siblings won’t feel one is being favored over the other. If you are considering appointing a power of attorney,  contact experienced estate planning attorneys in Orlando  today. The decision is an important one and should not be made lightly.

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You may be a private person and don’t want all your dirty laundry exposed, and so, now that you are going through (or at least thinking about) a divorce, you may wonder if it will be public knowledge. Maybe there are children whom you want to protect or assets you don’t want others to know about. These and other reasons make many people wonder about their divorce records and public access to them. Can the Public Access Divorce Records in Florida? Typically speaking, just like marriage records, divorce records are part of the Florida public records system and can be searched and accessed by anyone in the public. An interested party can request divorce records from the  Department of Health (DOH). So, if you are getting a divorce, whatever records are maintained can be accessed when a person requests the same. Florida has a history of keeping records, like divorce and marriage, open to the public. The purpose is simple: transparency. It allows people to see what happens behind closed courtroom doors. To deny the public access, there usually has to be a very good reason. The State of Florida will not automatically seal records for any good reason; you will have to request it. You must be very specific about how you request it, too, or else you risk denial of the request and must face the consequences of the public having the ability to access your divorce records. When Are Divorce Records Sealed in Florida? Florida divorce courts will consider a request by one or both parties to a divorce proceeding to keep divorce records from the public. When making this determination, however, the court will weigh: the reason for the request; the damage that could be done if records are not sealed; and, among other possible factors, how narrowly tailored the request is ( e.g. , more information than is necessary will not be sealed – the court still wants to keep records open to the public as much as possible). By and large, most of the weight is given to the reason for the request. Common reasons include: to protect the identity of a child; to protect domestic violence victims; to safeguard proprietary information from a business; to keep private any financial accounts, social security numbers, or other similar identifying information; and/or to prevent exposure to embarrassing information that could damage a person’s reputation, career, or other situation (keep in mind, to prevent publication of embarrassing information alone is not enough – the embarrassing information must have the potential to have a significant impact on some aspect of the person’s life). In the end, it is always up to the judge to make the final decision. If the judge feels that the reason does not carry enough weight sufficient to order the records sealed, then the judge won’t. That’s why in situations like this, you want to make sure you have a divorce attorney in Orlando, Florida, who knows how to handle these types of requests. Much of it will come down to the way the request is drafted and the documentation provided to support the reason behind the request.

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When you have a special needs child in your family, your first instinct may be to protect that person against any kind of abuse and to secure his or her financial future. To do so, many people wonder if they can leave money and/or other assets to the loved one with special needs in a will executed in Florida. The answer to those types of questions is yes. There is, however, a caveat: depending on the circumstances, leaving assets in a will to a special needs beneficiary may disqualify your loved one from other financial sources, like Supplemental Security Income (SSI) and Medicaid programs. These government programs provide essential benefits. That said, these essential benefits are limited to basic necessities, like: food, clothing, and housing. So, on the one hand, a special needs person may qualify for government benefits, but those benefits are limited. On the other hand, you can leave assets to a special needs loved one in a will, but that could disqualify your loved one from receiving government assistance. If you want to make sure your special needs loved one is financially stable upon your death, what can you do in Florida via  estate planning ? How Can You Protect a Loved One with Special Needs in Florida? You can open a trust for your loved one – a trust known as a Special Needs Trust. This kind of trust usually must be set up prior to the beneficiary’s 65th birthday. This trust – if drafted and executed properly – will prevent the government from disqualifying a beneficiary from government benefits. A special needs trust will also allow any lawsuit settlement money, gifts, or other funds to be transferred to the trust. In this way, those monies, too, will be protected and cannot be used as a reason to disqualify government benefits that a special needs person enjoys. Do You Still Need a Special Needs Trust in Florida Even if You Don’t Need Government Assistance? Some people may think that because a special needs person does not currently qualify for government funding because his or her family is wealthy, they don’t need to establish a special needs trust but can instead leave assets in a will for a loved one. But imagine this: your loved one is sued or you are sued for one reason or another. The money in the trust cannot be touched by the plaintiff in the lawsuit regardless of whether or not the plaintiff wins his or her case. Further, a trust fund can help you as well – if the fund is set up right. If you live in Orlando or anywhere in Central Florida, the estate planning attorneys at Veliz Katz Law can help you make sure you establish trust funds in a way they benefit you and a special needs loved one. Knowing a loved one will be taken care of is probably the best benefit of any trust.  Contact us  today to schedule an appointment.

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When we think of holidays for the purpose of parenting plans, custody, and timesharing, we usually think of holidays associated with days off of school (and – for parents – days off of work). Days off or school and/or work mean days parents can spend time with their child. So, working these particular holidays into a parenting plan is fundamental to a meaningful and doable plan. Halloween, however, typically isn’t a day off for anyone. So, it’s often not considered. But Halloween can be one of the most enjoyable of all holidays. Dressing up. Handing out candy. Receiving candy. Laughing and scaring and generally having a good time. That’s Halloween for many of us with kids. So, what do you do about it? Should it be included in a parenting plan in Florida? Should Halloween Be Included in A Parenting Plan in Florida? The more detailed your parenting plan is, the better the plan will be for everyone involved. Details prevent room for confusion or mixed interpretations. It allows you to know exactly who and when one parent is spending time with the child. Halloween is one additional detail that can aid in the thoroughness of your parenting plan. There are ways you can include it. Like all other holidays, you can add it to the plan on a rotating basis. One parent has the child on all even years, for example, and the other parent has the child on all odd years. You can even include who buys the costume – is it shared each year or does the parent with custody of the child on Halloween purchase it? Another solution is dividing the day up. Many parents will split Thanksgiving, Christmas, or other special holidays because these holidays are so special to them. One parent may get the child in the morning on odd years and in the afternoons on even years, and vice versa. The same can be done with Halloween: one parent has the child for the late afternoon while the other parent has the child for the early evening – so that both parents can enjoy their child (and likewise the child can enjoy his or her parents) during trick or treating or parties for the same. What Can You Do if You Didn’t Include Halloween in Your Florida Parenting Plan? If you didn’t include Halloween in your parenting plan, it’s probably not an excuse to modify the plan. But a fundamental principle to any parenting plan is its need to be flexible. There will be things that come up from time to time, and parents have to work with each other to accommodate these unexpected things. And though Halloween isn’t unexpected, it is something that parents can work together to ensure their child is secure and happy during this holiday. Halloween is a fun holiday. No one wants a real monster to scare away children. So, don’t bring out the monsters in each other. Work together and make sure Halloween is a safe and spooky fun experience for everyone involved. Come up with creative ways to share the experience. One parent can dress up the child and go trick or treating for the first half while the other parent finishes trick or treating with the child and takes him or her home to enjoy the goods from a special day spent with both parents. And therein is probably the best treat of the day for your child.

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Whether you are getting a divorce or otherwise breaking up as a couple and have a child, parenting responsibilities will most usually be shared as will the time you spend with your child. It’s the sharing part that can become a problem for many. Emotions are heated. Worries are rampant. Bitterness is undeniable. But it is in your child’s best interests if you are able to work together to devise a mutually beneficial parenting plan. Besides, the plan you come up with together will often be much better for you than the one the judge issues. Before the judge has an opportunity to review parenting plans submitted by both parties, you may have the opportunity – usually through a court order – to attend  parenting coordination. Here, we discuss what this is and how it could help you. What Is Florida’s Parenting Coordination? Parenting coordination is an alternative dispute resolution platform that focuses on helping parents make decisions for their children. During this process, a parenting coordinator – who is appointed by the court – helps the parents to create and/or implement a parenting plan. The parenting coordinator is meant to provide guidance and education, but the primary goals of the parenting coordinator are threefold: help parents learn to share parenting responsibilities while minimizing conflict; help parents effectively disengage when disputes arise; and help parents help their children grow up free from stress and guilt caused by their parents’ disputes about parenting. When Is Parenting Coordination Necessary in Florida? When there is high conflict between the parents regarding how to raise a child, parenting coordination may be necessary. Common reasons parenting coordination is sought include the following: mediation has failed; the court believes it is necessary to protect the child from harm due to the parents’ failure to implement the parenting plan; the parents have failed to implement a parenting plan; a child has been denied access to one parent due to the other parent; a child has been restricted from seeing extended family members; one parent has interfered with another parent’s access to important information concerning the child, like health, education, or welfare information; parents cannot agree on substantive issues regarding the child; one or both parties have changed attorneys too frequently; and/or the parties have litigated over and over again matters concerning  parental responsibilities  and  time-sharing. Parenting coordination can either be ordered by the court or agreed upon by the parents. What Happens if Parenting Coordination in Orange County Is Not Successful? When parenting coordination is not successful, the likely next step is back to court. A judge – and not you or the other parent – will make the decisions about any remaining disputes. This takes control out of your hands and into the hands of the court. It adds costs. It adds frustrations. And it adds time. The best solution is coming up with a parenting plan both parents can agree on. If disputes remain, then parenting coordination should be taken seriously. It is in the best interests of all parties to avoid the court’s interference. But if the latter transpires, then you want to have an experienced family law attorney in Orlando representing your rights and your child’s best interests.

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While married, you did everything you were supposed to do to secure your futures: you made sure your estate plan was properly drafted and executed through an experienced estate planning attorney in Orlando. But then you and your spouse divorced. Does this divorce impact your estate plan at all? It does. But surprisingly few people after a divorce revisit their estate plans to update them according to their new living situations. It could simply be they are just too busy and the thought never crosses their minds … until it’s too late. Here, we tell you how a divorce makes a difference to your estate plan in Florida and what to do about it. The Impact of A Divorce on Estate Planning in Florida Four often-used estate planning tools are the last will and testament; the revocable trust; the power-of-attorney; and beneficiary designations on bank accounts, insurance, etc. Fortunately for you in Florida, you are covered at least to the extent that any term, element, benefit referring to your ex-spouse will become pretty much void after a divorce. To clarify, however, the below statutes only take effect upon the final disposition of the divorce proceedings and not one day sooner. Last Will & Testament Florida Stat. § 732.507(2)  covers wills and states that: Any provision of a will executed by a married person that affects the spouse of that person shall become void upon the divorce of that person or upon the dissolution or annulment of the marriage. After the dissolution, divorce, or annulment, the will shall be administered and construed as if the former spouse had died at the time of the dissolution, divorce, or annulment of the marriage, unless the will or the dissolution or divorce judgment expressly provides otherwise. Revocable Trust Florida Stat. § 736.1105  treats revocable trusts about the same as the will and states that: Unless the trust instrument or the judgment for dissolution of marriage or divorce expressly provides otherwise, if a revocable trust is executed by a husband or wife as settlor prior to … entry of a judgment for dissolution of marriage or divorce of the settlor from the settlor’s spouse, any provision of the trust that affects the settlor’s spouse will become void upon … entry of the judgment of dissolution of marriage or divorce and any such trust shall be administered and construed as if the settlor’s spouse had died on the date of the … entry of the judgment for dissolution of marriage or divorce. Power-Of-Attorney Florida Stat. § 709.2109(2)(b)  treats powers-of-attorneys a bit differently. When a principal of a power of attorney divorces the agent, this statute takes effect as soon as the petition for dissolution of a marriage is filed rather than wait until the divorce is final. As such, if you do not have a successor agent named in the power of attorney document, the document is no longer effective. Beneficiary Designations Florida Stat. § 736.1105  prevents payment or transfer of an interest in an asset upon the death of the ex-spouse, making the asset part of the decedent spouse’s probate estate. Keep in mind, however, that jointly titled accounts (i.e., joint tenants or tenants in common) are not voided automatically upon dissolution of a marriage. What to Do About Your Estate Plan After a Divorce in Orlando Now, even though your ex-spouse will likely not benefit from an untimely death after a divorce, you still need to avoid probate and make sure that other aspects of your estate planning will not benefit your former spouse (unless you want it to). Probate avoidance is likely one of the reasons you initiated estate planning and it will continue to be a reason after a divorce. Making sure your estate planning reflects your new situation may require the help of an experienced estate planning attorney in Orlando, Florida. It would be useful, too, if that same attorney has experience in Orlando family law generally and divorce specifically. If you have questions,  contact  Veliz Katz Law today.

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A guardian is appointed by the court to represent the best interest of the ward.There are two types of guardianships. The first is for a minor who will be receiving monies of $15,000.00 or more from a lawsuit settlement, wrongful death beneficiary, insurance policy award, or inheritance. Florida law presumes that a minor is unable to manage a substantial amount of money correctly. Therefore, the guardian’s role is to look out for the child’s best interests until the minor turns 18 years of age. The other instance, at the opposite end of the continuum of life, most often involves the elderly. A guardian is appointed to watch over the ward’s health and safety and manage the ward’s finances and property because the ward no longer has the mental capacity to perform those daily tasks. An involuntary guardianship places the decisions the ward would make about his or her health, well-being, and property in the hands of a family member or professional guardian. A court must find that the ward is incapacitated before it can appoint a guardian. The court must find by clear and convincing evidence that the ward is unable to take care of his or her daily needs and tasks and is unable to make sound financial decisions and manage their money. A guardian can be appointed just for the person to care for the ward’s health and daily needs or for the property to handle the ward’s finances and property. The court can make the guardianship plenary which means to take care of the ward’s person and property. Recent events in the State of Florida involving professional guardians demonstrate the importance of having a qualified or appropriate guardian appointed. For more information, click on the link below.