Working hard your whole life, sacrificing, saving, investing wisely and also managing by acumen, sheer dumb luck or some combination to avoid pecuniary pitfalls that might otherwise have left you practically penniless, of course you want as much of your estate as possible to reach the people and causes that matter most to you. That means in part avoiding probate if you can and minimizing the tax hit your heirs will take on whatever gifts they inherit. Ensuring the most expedient possible estate transition usually involves (at minimum) some combination of a will and a revocable and/ or irrevocable trust.
Occasionally our Fort Lauderdale probate attorneys are queried about a the prudence of early inheritance, also referred to as pre-death transfers and gifts prior to death. The short answer is: It really depends, but it can be very risky.
There are a number of factors to consider when weighing early inheritance as an option. Let’s say we’re talking about transfer of your Florida home. The reason we’ve heard most commonly cited for sharing or transferring the deed of a Florida residence to children or grandchildren before death is that heirs are then spared cumbersome estate taxes and potentially draining probate litigation. Perhaps, the homeowner thinks, they can safely bypass Florida estate planning altogether with this option. However, early inheritances really should be avoided least until you’ve discussed it at-length privately with your own estate planning attorney. Get a second opinion if you still aren’t convinced. Because while savings for an heir could prove worth it, the elderly benefactor may be taking a major risk. Sometimes, even the most loyal, honest heirs can end up making a mess of things, even unintentionally. Continue reading