Trust administration happens when the decedent establishes a trust during their lifetime and appoints a trustee to manage and distribute assets. The trust contains instructions on the distribution of assets and often bypasses the probate process.

An experienced Florida estate planning attorney can help determine which process is best for your situation when you complete an estate plan or can guide personal representatives and trustees through administering a will or trust.

What is Probate?

The probate process is the court-supervised process of distributing assets that the decedent did not include in a trust. It also handles beneficiary designation. The probate process includes:

• Filing a petition and the will with the court
• Appointing a personal representative if the decedent died intestate or approving the personal representative the decedent named in the will
• Filing a notice to creditors, beneficiaries, and other interested parties
• Taking an inventory of the estate’s assets
• Paying creditors and other expenses
• Paying real estate taxes
• Distributing assets to beneficiaries
• Creating a final accounting
• Filing a closing statement

The probate process is very public, as the records are available. It can take 6 to 18 months or longer to complete the probate process, depending on several factors, including the complexity of the will and whether family members contest the will. Estate probate attorneys can represent the estate should someone challenge the will.

What is Trust Administration?

If the decedent has a trust, the process is more private, as many documents do not require court supervision. Key steps in trust administration include:

• Posting the fiduciary bond, if necessary
• Trust asset management
• Protecting the value of trust property
• Enforcing legal claims of the trust
• Distributing assets under the trust
• Maintaining or dissolving the trust based on the decedent’s intent

Trust administration is often less expensive and faster than probate, as a trust does not need to go through the probate court.

Key Differences Between Probate and Trust Administration

The significant differences between the probate and trust administration processes include:

• Court Involvement: Probate requires court involvement, while trust administration does not
• Privacy: The probate process is a public record, while trust administration remains private unless someone contests the trust, in which case, it goes to court and becomes a matter of public record.
• Time: Trust administration is usually faster because trusts generally do not go through the court process
• Cost: Trust administration is generally less expensive, as the process is shorter and you do not have court fees and other expenses related to probate
• Flexibility: Trust administration is more flexible, as it is led by the trustee, as opposed to the probate process, which requires court oversight

In addition to the additional cost and loss of privacy in the probate process, there is a higher potential for conflict from disinherited heirs when the estate uses only a will.

Which Process is Right for You?

When creating an estate plan, the probate attorneys at France Law Firm can review your situation and recommend whether you need to create a trust or if a will will work best for you. Factors affecting your decision include:

• Complexity of the estate
• Size of the estate
• Privacy concerns
• Cost sensitivity
• Family dynamics
• Blended families
• Federal tax laws

Contact France Law Firm

A wills and estate lawyer at France Law Firm can review your situation, advise you of how state laws may affect your estate, and help you create an estate plan unique to your financial situation and needs. Contact us today for a consultation by calling 850-224-1040 or completing our online contact form.

The post Probate vs. Trust Administration: What’s the Difference and Why Does It Matter? appeared first on France Law Firm.

Creating an estate plan—or at least a detailed will—can prevent scenarios such as this from happening. The experienced probate attorneys at France Law Firm can help you create a will or an appropriate estate plan for your situation.

When Adults Should Create a Will

Every adult, regardless of age, should have a will. Even if you are still living with your parents at 18 or are just starting, you most likely have a bank account, a vehicle, and sentimental items you would like a particular person to have should something happen to you.

Anything could happen at any time in your life. An unexpected, sudden illness or an accident could easily take your life at 18 as it could at 80.

Reasons Every Adult Should Have a Will

Creating a will allows you to name a guardian to care for minor children and family members who may be unable to care for themselves. A well-drafted will also allow you to name an executor—someone you trust to oversee the distribution of your estate. Additional reasons to create a will early in your life include:

• Making bequests and donations to certain people and charities can decrease estate taxes.
• The possibility of avoiding probate, which is time-consuming and often expensive.
• Minimizing family stress during a difficult time.

As you add assets, you can easily change your will. Over your lifetime, as you start earning more, amassing more assets, and having children, you can create an estate plan that can help protect your assets and your family should you become incapacitated or die.

Information Required for a Will

Before you speak with an experienced estate planning attorney, it helps to gather the information required to draft a will. You will need:

Personal Information

You will need the legal names, birthdates, and addresses of you, your spouse, children, beneficiaries, and potential executors or guardians. Phone numbers are helpful, too. You will also need the date and place you married your current spouse, prenuptial and/or postnuptial agreements, divorce decree, and custody paperwork.

A List of Assets

All property you own, whether in your name only or jointly with your spouse, should be on the list. The list should include bank accounts, cash, life insurance policies, pension plans, retirement accounts, annuities, real estate, businesses, vehicles, jewelry, boats, items of sentimental value, and furniture. If you have pets that should go to a specific person, be sure to list them, too. Don’t forget book collections, coin collections, and tools.

A List of Debts

Include all debts such as credit cards, mortgages, promissory notes, and mortgages. You should also include account locations and the location of account access information.

Beneficiaries

Know who you plan to bequeath your assets to. Bank accounts and life insurance accounts may already have a beneficiary—be sure they are the same person on the account and in your will.

You should also add secondary beneficiaries if something happens to the primary beneficiary before your death, or if the primary beneficiary dies simultaneously.

Representatives

To protect your interests, you should have a list that includes an executor plus two alternatives, as the probate court must approve the named executor. You should also include:

• Lawyers
• Trustees
• Guardians for minor children and family members who require care

Contact France Law Firm

Create a will or an estate plan to protect your assets and your family. It does not matter how young you are—if you are an adult, even if you still live with your parents, you should have a will or an estate plan. Contact France Law Firm at 850-224-1040 or complete our contact form today to schedule a consultation.

The post Why Every Adult Needs a Will: A Guide to Protecting Your Wishes appeared first on France Law Firm.

The Tax Benefits of Charitable Giving

When you donate to qualified charitable organizations, you can reduce your overall tax liability. This type of deduction is valuable to those earning a high income, helping them minimize their tax burden while supporting worthy causes at the same time.

To maximize tax deductions, you should consider several factors, including:

• Choose the Right Charitable Vehicle: Common options for charitable giving include charitable remainder trusts, donor-advised funds, cash donations, and private foundations. Each type has its benefits, including control over funds and tax efficiency. Your estate planning attorney and tax attorneys can help you choose the best charitable vehicle for your situation.
• Leverage Appreciated Assets: By donating appreciated assets, such as artwork or real estate, you can support your favorite charity and maximize your tax deductions. In many cases, if you held the asset for over a year, you can deduct the asset’s fair market value when you donate. In addition to minimizing your tax burden, you could avoid paying capital gains tax. Other assets may include restricted stock, publicly traded securities, private equity fund interests, post-IPO stock, cryptocurrency, equity compensation awards, and privately held business interests.
• Qualified Charitable Distributions: If you are 70.5 years or older and required to take minimum distributions from your retirement accounts, you can transfer funds from your IRA to a charity without realizing taxable income from the distribution.
• Use Bunching Strategies and Optimize Timing: If you can bunch more than a year’s worth of charitable deductions and optimize the timing, for example, by coordinating charitable donations with significant financial events, you could increase your tax savings. Bunching may benefit those who can now take the much higher standard deduction. For example, if you donate for two years in one year, you can itemize in 2023 and then take the standard deduction in 2024.

Charitable Giving and Estate Planning

Charitable giving can also affect the amount of taxes your estate pays. Strategic charitable giving can maximize wealth transfer to your heirs by using various vehicles. Your tax attorneys and estate planning attorneys at France Law Firm can help you structure your charitable giving to minimize not only your yearly tax obligation but also your estate tax obligation.

Obligations for Charitable Giving: Documentation and Record-Keeping

To take advantage of charitable giving, you must document your donations and keep the documentation to prove your donations to the Internal Revenue Service. When you submit your receipts to your tax attorney at France Law Firm, your attorney can include the donations as long as they are to qualified charitable organizations.

Documents may include receipts, appraisals for non-cash assets you donated, and letters of acknowledgment from charitable organizations. Your attorney can use this documentation to file the required tax forms to receive a tax deduction without incurring potential penalties if you exceed certain thresholds.

Contact France Law Firm

Charitable giving and tax planning are complex aspects of your finances. A tax attorney can help you claim charitable giving on your taxes and estate to maximize tax deductions. Your tax and estate planning attorney can help you choose the right philanthropic vehicle and leverage appreciated assets to maximize your tax deductions.

Contact a tax and estate planning attorney at France Law Firm for a consultation by calling 850-224-1040.

The post Maximizing Tax Deductions for Charitable Giving appeared first on France Law Firm.

What is a Revocable Trust?

You might have heard the term “living trust.” That is the same as a revocable trust. This type of trust is very flexible – you can change or revoke the trust any time you want. They are great for managing your assets while you are living. For example, if you get into a car accident and can’t handle your finances for several months, the trust allows someone else to manage your assets. It also helps simplify estate administration and saves your loved one’s time.

A revocable trust that is properly set up can also help avoid probate. Even with probate attorneys helping, the process in Florida is time-consuming. It can also be costly. When you place assets into a revocable trust, most usually bypass probate, which means your loved ones can access their inheritance more quickly.

Another benefit of a revocable trust is that it keeps your assets private. If you list them in a will, once that will is filed with the probate court, it becomes a matter of public record. Revocable trusts remain confidential.

Finally, the best benefit of a revocable trust is that you can change it at will. Got married? You can change the trust. Sold a house listed under the trust? Amend the trust to remove it. Buy a new house? Amend the trust to include the house. Whether it is the birth of a child, a new marriage, divorce, or other changes, you can make the changes you need with a revocable trust.

What is an Irrevocable Trust?

If a trust is irrevocable, you cannot make any changes to it without the consent of the beneficiaries. However, they have more advantages than revocable trusts – for some. When you create an irrevocable trust, you are the grantor, and you transfer ownership of your assets to a trustee for the benefit of your beneficiaries. However, once you create an irrevocable trust, it’s very difficult to revoke or change it.

While the loss of control over your assets may seem daunting, it is what protects assets from creditors and minimizes estate taxes. Irrevocable trusts also ensure no one interferes with your wishes. Estate probate attorneys can help you draft an irrevocable trust with these and other benefits.

One of the most common reasons people choose irrevocable trusts is for asset protection. Because the grantor transfers assets out of your name and into the trust’s name, those assets are not vulnerable to most of your creditors, judgments, and legal claims. Irrevocable trusts are common for people in high-risk professions or those who want to preserve family wealth.

An irrevocable trust is also a powerful estate planning tool for estate taxes. Most assets transferred to an irrevocable trust are no longer taxable to the grantor upon his or her death. You can also use an irrevocable trust as part of a gifting strategy – when you gift assets, you are limited to the amount by the annual gift tax limits. You can transfer some of your wealth to an irrevocable trust to reduce your overall tax liability. However, the tax laws change every year – always discuss this strategy with asset protection attorneys to ensure this is the best option for you.

You can also use an irrevocable trust to help with Medicaid eligibility. If you use a certain type of trust, those assets may be exempt from the Medicaid eligibility calculations.

Contact a Wills and Estate Lawyer

Regardless of your age, creating an estate plan can only benefit you. As long as you have assets, you should have an estate plan since you never know whether an accident or sudden illness will render you incapacitated or take your life. Contact France Law Firm today for an estate planning consultation.

The post Revocable vs. Irrevocable Trust appeared first on France Law Firm.

Responsibilities of an Executor

An executor is a legal appointment in a will that names the person or persons who will carry out the terms of the will after the death of the testator. Executors have a legal duty to act in the best interests of the estate and its beneficiaries, and they are often granted specific powers and responsibilities by the court. These include:

• Notify necessary agencies and organizations about the death. This must be done immediately, especially for banks, creditors and other financial institutions. For instance, credit card providers should be notified after final expenses are made to avert risks of fraudulent use. The notice of death can also kickstart the process of receiving life insurance payments and other death benefits.
• Apply to obtain probate of the will from the court. This is a legal authorization to execute the will.
• Carry out any instructions about the deceased’s funeral that may be outlined in the will. The executor may obtain funds from the deceased bank account to cover the funeral costs.
• Identify and pay any outstanding bills or debts of the deceased, such as loans and credit card balances, using funds from the estate. They must also file and pay any estate taxes owed to the government.
• Document all the deceased’s assets and ensure they are protected from theft, damage and degradation as the estate administration process progresses.
• Manage the assets of the deceased. This involves creating the estate account, offsetting property bills, terminating recurring expenses such as subscriptions or memberships and paying off estate taxes.
• Identify and maintain communication with the beneficiaries. Robust and professional communication with the beneficiaries is vital to help forestall any disputes that may arise.
• Value the estate contained in the will. Assets range from simple items like clothing or artworks to large or valuable items such as jewelry, cars, stocks and real estate. All estate assets must be valued by authorized appraisers or credible sources.
• After the necessary deductions, the executor may distribute the remaining assets to the beneficiaries according to the terms of the will and close the estate.

Considerations When Choosing an Executor

Family disputes, legal claims against the estate and excessively demanding beneficiaries are common problems that may arise in the estate administration process. Where executors are acquainted with or related to the beneficiaries, resolving these conflicts can be challenging as the executor struggles to make judgments that are in the best interests of the beneficiaries while still attempting to carry out your final desires.

Also, most persons chosen as executors have little knowledge of the requirements and intricacies of the legal process, leading to delays in estate administration and costly mistakes that may attract unfavorable sanctions. For these reasons, you should appoint an experienced wills and estate lawyer to serve as your executor or to work directly with your executor. This is to ensure that the administration of your estate is efficient and seamless.

France Law Firm has a team of dedicated and professional estate planning attorneys who are committed to providing the assistance you need as you plan your estate.

The post Choosing the Right Executor for Your Will appeared first on France Law Firm.

One area where many small business owners flounder is taxes. Even if you’re paying taxes on time, you may be overpaying and not realizing it. Or, you could be doing something wrong and setting yourself up for an audit in the future.

Overall, the best strategy is to prepare for taxes ahead of time so you’re not left with a significant financial burden at the end of the fiscal year. So, here are some crucial tax planning tips to help you stay on top of everything. Best of all, you can have a business tax attorney by your side with France Law.

Make Sure to Itemize Deductions

Business expenses can add up, and they can help you minimize how much you pay in taxes every year. Some examples of business deductions can include:

• Rent or Mortgage Payment - If you work from home, you can deduct a portion of your rent or mortgage payment. If you lease a storefront, you can also deduct those payments from your earnings.
• Utility Bills – With a home business, you can claim some of your bills against your income. Otherwise, utility bills for a dedicated office or storefront can be deductible.
• Inventory or Equipment – You may have to buy equipment to run your business, which may include hardware and software. Also, if you sell products, you can deduct the inventory you keep on hand to make those sales.
• Payroll - If you have to pay employees to run your business, you can deduct their payroll against your earnings. However, you also have to pay your portion of the payroll tax, so don’t forget about that.

Overall, anything you spend money on to run your business (within reason) can likely be deducted. By tracking and itemizing these expenses, it’s much easier to lower your taxable income and your overall financial burden.

Accelerate or Defer Payments and Invoices

If your business is service-based, you have to send invoices to clients and wait for their payments. While it can be annoying to wait for cash to come in, you can use that to your advantage toward the end of the year. The way to do this is to accelerate or defer payments as necessary to improve your tax liability.

Accelerating your payments means asking for clients to pay their outstanding invoices before the end of the calendar year (December 31st). You may want to do this to lower your tax rate for the following year, particularly if you’re already in a high bracket for the current year.

Deferring payments means having clients pay after the end of the year so you don’t have to pay taxes on those earnings right away. Deferring payments can work well to lower your overall bill, but you have to consider how that will affect next year’s tax burden.

Working with tax attorneys can help you understand whether either option is viable or necessary for your business.

Utilize Retirement Accounts

Traditional IRAs and 401k accounts are great for tax purposes because you can deduct contributions from your total income. So, it’s best to contribute as much as possible throughout the year to lower your tax payment.

For a non-Roth IRA, the maximum contribution is $6,500 for 2023 (or $7,500 for those over 50). With a 401k, the maximum contribution is $22,500 for the year ($30,000 for those over 50). As you can imagine, maxing out these accounts can limit your liability significantly.

Take Advantage of Tax Credits

The IRS has a full list of business tax credits that can help subsidize your operations and reduce your overall tax burden. While your business may not qualify for many of these credits, some common examples include:

• Work Opportunity Tax Credit – If you employ individuals from a marginalized group, you can claim up to 40 percent of their earnings in the first year and half of those earnings in the second year.
• ADA Access Credit – If you employ individuals with special needs, you can upgrade your office to make it more accommodating with accessibility features. You can then claim up to half of all qualified costs, up to $10,250.
• Retirement Plan Credit - Setting up an employee retirement plan costs money, and you can recoup up to $5,000 of those costs with this credit.

Don’t Forget to Report Losses

Business losses can be a huge advantage when it comes to reporting your taxable income. While operating at a loss can be a bad sign, there are ways to utilize those losses and benefit in the long term. A loss simply means that you spent more than you brought in over a given period, such as a fiscal quarter. By reporting those losses, you can either lower your tax burden or claim a refund for taxes you’ve already paid.

It’s imperative to know that you can’t intentionally force your business to lose money to pay fewer taxes (as that’s fraud). However, if you have a slow quarter, you can still benefit slightly.

Work With a Tax Professional Like France Law

France Law specializes in helping small business owners like you navigate the complicated world of taxes. Having experienced business attorneys by your side allows you to maximize your earnings and minimize your tax burden. We can help you set up your books, manage your cash flow, and itemize your deductions so your business is a well-oiled machine. Don’t wait for tax season to start – contact us today!

The post Tax Planning for Small Business appeared first on France Law Firm.

What Is Gift Tax?

A gift tax is a federal charge that is imposed by the Internal Revenue Service (IRS) on property that’s transferred from one person to another person who pays nothing or only a portion of the actual worth in return. Additionally, if a person sells a product at less than its value or offers an interest-free or low-interest loan, it may be considered a gift.

The gift tax is levied on the donor and falls between 18%–40% of the asset’s original worth. Though this may sound cumbersome if you’re considering gifting away assets such as money, real estate, vehicles, art or securities such as stocks and bonds, with the right tax attorney to guide you through the IRS provisions, you may not pay a dime in gift tax.

Gift Tax Exemptions

While gift taxation typically applies to sizable gifts, certain exemptions exist to reduce the tax burden on Americans. These exclusions represent the number of gifts you can make yearly and over your lifetime without incurring taxation. These include:

Annual Exemption

The annual exemption is a provision by the IRS that allows you to make gifts up to a certain amount each year without incurring tax. As of 2023, the annual exemption allows you to make gifts of up to $17,000 yearly to any number of recipients. For example, if you have two children, you can transfer as much as $17,000 per child for a total of $34,000, entirely tax-free.

Lifetime Exemption

The lifetime exemption is another provision by the IRS that allows you to make gifts up to a certain amount over your lifetime. It represents the total amount you can give away throughout your life without incurring gift tax. As of 2023, the IRS set the gift tax lifetime exemption at $12.92 million per individual. This means that, even if you exceed the annual exclusion amount, the excess is simply deducted from your lifetime exemption when you fill out the IRS Form 709. For example, if a father chooses to give a $20,000 car to his grandson on his college graduation, the excess of $3,000 above the annual limit of $17,000 will be subtracted from the lifetime exemption.

Not Every Gift Is Taxed

For certain gifts, you don’t need to pay tax, and you don’t need to apply for exemptions, either. These gifts are entirely tax-free. They include:

• Gifts given to a spouse or dependent (who are U.S. citizens)
• Gift payments for school tuition (made directly to the school account)
• Gift payment for medical care (made directly to the hospital’s account)
• Charitable donations
• Political contributions

Helpful Tips for Gift Tax Planning

Do you want to reduce your estate tax? Gifting your property helps to avoid these unnecessary expenses. Some other tips to help you with gift tax planning include:

• Being married doubles your gift tax exemption amounts, meaning you and your spouse can give $17,000 each for annual exclusion and $12.92 million each for lifetime exemption ($34,000 and $25.84 million, respectively).
• The IRS raised the exclusion amounts from $16,000 and $11.7 million in 2022 to $17,000 and $12.92 in 2023 — the highest ever.
• Consider trusts to maximize exemption.
• Hiring an experienced tax attorney for expert advice and guidance will help to enjoy the full benefits of gift taxation exemptions.

The Experienced Estate Planning Attorneys at France Law Can Help You Navigate Gift Tax Laws

Are you looking to create a will, manage your estate or plan your federal income tax or gift tax? The business law attorneys at the Florida-based France Law know the best strategies to help you have a stress-free journey, accomplishing your objectives with no necessary taxations or complications. Contact us today to book a consultation.

The post Gift Tax Basics appeared first on France Law Firm.

1. Tax Reduction Strategies

With probate, the government collects taxes on estate worth over a certain amount. An estate planning attorney can help you create an estate plan that minimizes the taxes due. Factors that affect taxes include:

• The gross estate value.
• Expenses incurred during the estate settlement.
• The debt you owe at the time you die.
• The deductions your estate can take.

The Internal Revenue Services figures estate taxes on the estate’s net worth – gross minus expenses, debt, spousal transfers via a trust, and charitable donations. If the estate tax exemption is larger than the net value of the estate, you most likely won’t have to pay taxes.

2. Preventing Fighting in the Family

When someone dies, family members inevitably start fighting over who gets what, especially if you decide to leave more money to one family member over another or leave a family member out of your Will. When you clearly define who gets what, you can minimize the risk of a contested probate case. Creating trusts (you can have more than one) also minimizes family squabbles, especially when you have children as a result of more than one marriage or relationship.

3. Avoiding Costly and Lengthy Probate and Publicity

If you die without a Will, the state determines who receives your assets. You have no choice in the matter. An estate plan ensures that your wishes are met. It also reduces the length of the probate process and can keep the public out of your business. Wills are public documents filed with the probate court. However, Florida does not require you to file a trust. If you put all your assets into a trust, the public does not know what you have. Probate attorneys at France Law can help you create an estate plan to avoid this lengthy and costly process.

4. Planning for Unexpected Incapacitation

An estate plan isn’t only for your death. If you become incapacitated because of an illness or accident, your assets are at risk. The court could appoint a guardian you don’t agree with or someone that would steal from you. Creditors could put liens on your assets.

An estate plan consists of several documents, including a Will, trusts, financial power of attorney, healthcare power of attorney, parenting plans if you have minor children, a living will, and more. These documents ensure that those you choose to care for you and your assets are those you trust.

Trust France Law Firm With Your Estate Planning

Estate planning attorneys customize documents that are tailored to your specific needs. When you opt for the do-it-yourself version, you get fill-in-the-blank documents that will most likely not meet your needs unless you have a very basic estate. However, even if you are younger and don’t have many assets, you will most likely acquire assets over time.

Each time you purchase another asset, such as a home or another vehicle, you get married, increase your savings, and make other life choices; an estate planning attorney can easily update your estate plan to ensure you are protected in the event of an unexpected accident or illness.

Contact an estate planning attorney at France Law for an estate planning consultation.

The post Top Reasons to Hire an Attorney for Estate Planning appeared first on France Law Firm.

Here are some tips to navigate the complexities of business taxation that can help you reduce your tax burden or even reduce the risk of an audit.

Retain Business Law Attorneys

A Florida business law attorney, like the tax attorney at France Law, has experience in tax laws that affect businesses, including choosing the best entity type and helping you through your years in business. Tax attorneys can do your taxes like an accountant, but they also know the laws and must keep up with all of the new tax laws.

Always Keep Adequate Records

While it’s tempting to throw your receipts in a box and deal with them at the end of the year, doing that could increase the risk of an audit. If you lose a receipt or miscategorize it, it could impact your tax obligation. Keeping receipts in date order and separating them by category makes your federal taxes much easier – and you’re sure not to miss a significant deduction.

Part of keeping adequate records is separating business and personal expenses. If you commingle your expenses, the IRS can start looking through your personal accounts for business expenses.

Claim All Income

Make sure you claim all of the income you earn, even if someone doesn’t give you a 1099. If you don’t keep track of your earnings in an accounting program, keep a spreadsheet of everything you earn. Even though your clients do not send you a 1099, they are still reporting the income you earn to the Internal Revenue Service, as it is an expense for them.

Many clients no longer send 1099 forms if they pay you via PayPal or another online processor. Some processors send you a 1099 based on the amount you ran through the processor and / or the number of payments you received. When that happens, and a client pays you, you end up with two 1099 forms for the same income. Thus, some clients stopped sending 1099 forms.

Know What Gross Income and Net Income Is

Gross income is what you earn before any deductions, including the cost of goods sold. Gross profit is what you have when you subtract the total cost of goods sold.

Net income is gross income minus the cost of goods sold, operating expenses, interest on loans and debts, depreciation, income taxes, overhead, and other government deductions.

When selling goods, you must know what your realized profit is, or you could end up losing money. For example, if you sell Widget A for $100 and your cost of goods is $25, you might think your profit is $75. However, you must also subtract all the other expenses that go into making Widget A. If the listed expenses exceed $75, you will take a loss on that product.

Manage Payroll

If you do not do payroll yourself, be sure to find a reputable company to do it for you. You could find that the company deducts taxes but never sends your payroll taxes in – and then you’re on the hook for anything the payroll company didn’t pay. Always check your accounts.

Contact France Law

Business law attorneys and tax attorneys can reduce the stress of tax time by helping with your taxes and ensuring you set your company up in a way that best benefits you. Contact the tax attorneys at France Law for help with your yearly federal taxes and setting up a company that best benefits you and your business.

The post Business Taxation: Tips for Business Owners appeared first on France Law Firm.

The Expense of an Incapacitating Illness or Death

When you become incapacitated or die, your loved ones have all the regular expenses of the illness or, in the case of death, funeral and burial expenses. If you don’t have a will, your loved ones will also have the expense of going to probate court. Probate attorneys and court fees can eat up your heirs’ inheritance.

You can avoid many of the probate-related expenses if you have an estate plan. Even if part of the estate has to go through probate, it’s less expensive than if your whole estate has to go through the court.

Basic Estate Planning Documents

The estate planning documents you need depend on several factors, including but not limited to the value of your assets, how you want to disburse your assets, if you are planning for an incapacitating illness, and if you need to have control over the amount of money your heirs receive.

Last Will and Testament

Every estate plan has a Last Will and Testament. You can set it up to disburse your assets, or you can create a “pour-over” Will that dumps your assets into a trust upon your death. The Last Will and Testament is the main document in your estate plan.

Trusts

The type of trust you have depends on several factors, including whether you need to protect your assets from taxes, if you have children, and whether you want control of your assets during your lifetime. Trusts can be revocable or irrevocable. With a revocable trust, you can add and remove assets. An irrevocable trust does not allow that – think of it as a permanent trust.

Your Will attorneys can review your assets and help you determine which type of trust is best for your situation.

Healthcare Power of Attorney

If something happens to you and you can’t make decisions on your own, you’ll need someone to make those decisions for you. To ensure that your wishes are met, create a Healthcare Power of Attorney. It names a person to make those decisions and instructs them on how to make the decisions.

Financial Power of Attorney

An accident or unexpected illness can happen at any time in your life. A Financial Power of Attorney names someone you trust to handle your affairs should you become incapacitated or die. You can draft it so that it only takes effect if you can no longer handle your financial affairs. You can also include all of your financial affairs or some. You can even create two if you need one person to handle paying bills and another to handle your investments.

Living Will

A living will instructs a trusted loved one how to handle your medical wishes. For example, if an accident causes you to go into a coma, you can instruct a trusted loved one to remove you from life support. You can also use it to instruct your loved one to make certain decisions when you have certain illnesses. For example, you can ask for resuscitation after a heart attack but not after an illness-induced coma.

Contact Florida Wills and Estate Lawyer

One of the ways to reduce the stress of your incapacitating illness or death is to have an estate plan. It can be as simple or as complex as you need. Even if you are younger and don’t have a lot of assets, you should have an estate plan – you can add to it as you purchase more assets and increase your wealth.

Contact a Florida estate planning attorney at France Law for a consultation and to get your estate plan started so you are sure who makes medical and financial decisions and who receives your assets should you die.

The post The Basics of Estate Planning: How to Protect Your Assets and Ensure Your Legacy appeared first on France Law Firm.