December 2017 (v.1703)

Florida Wills & Trusts

December 2017

(v.17.03)

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Legal Developments

Increased Federal Tax Exemptions (effective January 1, 2018)

Applicable Exclusion Amount: $5,600,000 (up from $5,450,000)

GST Exemption Amount: $5,600,000 (up from $5,450,000)

Gift Tax Annual Exclusion Amount: $15,000 (up from $14,000)

These figures reflect the amounts scheduled to be in effect without regard to changes that are planned under the Tax Cuts and Jobs Act of 2017. The final conference bill was issued too late for our year end update schedule, but we will update those numbers for you early in 2018, once the IRS determines what they really are. These numbers are not integral to the main text, and appear, if at all, in the synopsis and the Law & Strategy. While we expect the exemptions to roughly double, the exact amount after indexing awaits precise calculation. Bringing to mind Will Rogers’ classic observation “The only difference between death and taxes is that death doesn’t get worse every time Congress meets.”

Updated Product Features

New, Slimmer Complex Joint Trust

In response to requests for less complicated structure for the Joint Revocable Trust, we consolidated all the previously listed asset schedules into one Schedule A. Now, all assets added to the Complex Joint Revocable Trust with separate shares will automatically be divided between the spouses’ shares. For those who have come to know and love the Schedule A through D (or E) format, a new question will allow you to reinstate that approach. New Question 6.

New Unitrust Provisions

A new option has been added to express the “Payment of Income” for the Marital Trust as a unitrust interest. The interest rate is defaulted to 4%, halfway between the bookends of 3% and 5% allowed by Fla Stat §738.1041 and the range accepted by the IRS as constituting a qualified income interest. Various definitive and administrative terms are included, and an option to allow some distributions of principal, albeit restricted—as befits the unitrust/total return trust concept—are included. If this approach is selected, the new language replaces the “Distribution of Income” and “Distribution of Principal” paragraphs in the Marital Trust. Question 488, New Question 493

Durable Power of Attorney Special Transactions Modified and Clarified

To further clarify an agent’s powers, the SPECIAL TRANSACTIONS section for the ‘Full version’ DPA was revised and some powers consolidated to avoid confusion. The designated space for the principal to initial certain powers was moved next to the wording granting the power (which was expanded) to prevent third parties from unreasonably rejecting the powers.

New Designation of Preneed Guardian for Minors

A new Designation of Preneed Guardian for Minor was added to the Authorization Forms for Minors menu. This is a new form authorized under Fla Stat §765.2035. Question 14

Adoption Provision Clarified in Definitions

From a customer suggestion, we excluded the testator/rix and Grantor from the operation of the adoption age limitation. It was always the intention for that restriction (a child must be adopted by a certain age to count) to ensure a meaningful relationship with the adopting parent, typically a second or third generation descendant. It was pointed out that it might apply equally to an older child adopted by the testator/rix or Grantor; although such children would likely be named as takers, we removed the restriction for such an adopted child.

Update to Digital Assets Provisions

The result of another customer suggestion to correct a statutory cite and clean up the Law & Strategy.

New Option to add Subsections in Custom Provisions

In response to customer requests, we added a new subsection option to the ‘Add Custom Provision’ question at the end of each major section in the Navigator for wills and trusts. This allows the user to add a 3^rd level under the level 2 headings (1.1(a), 1.1(b), and so on), and thus provides greater flexibility when drafting documents and creating templates.

As before, you have the option of adding custom text either with or without a section heading. If you wish to create a template from your client answer file, the custom text will automatically become part of that template.

For more information on creating templates see Creating Templates for Estate-Planning Products in the Using Templates topic by selecting HELP from the Lawgic menu. In addition, you may attend one of our monthly template Webinars. Click here for more information and registration.

New Questions 162, 190, 211, 229, 240, 252, 272, 278, 405, 479, 515, 581, 641, 690, 746, 915, 940, 979, 1056, 1097, 1097, 1129, 1161, 1170, 1176

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To view those questions that are new in this update, or where Law & Strategy, choices, or default answers have changed, use the "Up_Dec17" flag file. From inside Lawgic, open any existing answer file; on the Flags menu, click Open Flags, select the appropriate Title (click OK), and next select the "Up_ Dec17" flag file (and click OK). To view all flagged questions, click Expand All on the Answers menu and scroll the Navigator. Flagged questions will be indicated with blue bold text.

Please continue to send us your suggestions on existing or new products. Contact our Technical Support Department at 1-877-2-LAWGIC (252-9442) or e-mail us at support@lawgic.com.