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4 Reasons Why You Need an Irrevocable Trust
Rodriguez Law, P.L. • April 19, 2018

When working through your estate planning, you’ll inevitably be faced with the decision of establishing either a revocable or an irrevocable trust. Though they are similar in benefit to one another, a revocable trust allows you to make changes once the trust is established, while an irrevocable trust cannot be altered.


So why would anyone want to establish a trust that can’t be changed? Believe it or not, irrevocable trusts have benefits that can outweigh the permanent nature of the trust, and they are frequently utilized in order to receive benefits for some of the following items:

Taxes

Irrevocable trust owners reap huge tax benefits, both on a personal level as well as on their estate taxes. Assets placed in an irrevocable trust are not subject to estate taxes, which can lead to protection from the probate process. This means your beneficiaries will get closer to the amount that you intended to give to them in the first place because fees and costs have not eaten away at it. In addition, estates with higher values are taxed at a higher rate, so placing assets in your irrevocable trust decreases the overall estate value, thus saving taxable money in the long run.


On a personal level, placing assets in an irrevocable trust separates them from your reported income, which could place you in a lower tax bracket.

Medicare

Because qualifying for Medicare is based on income, placing assets and funds into an irrevocable trust disqualifies them from being included in any assets used to establish qualification. Many find that this is a helpful way to qualify for Medicare help when it is most needed.

Life insurance

You can name your trust as the beneficiary of your life insurance plan. By doing this your life insurance is paid to the trust and is not included in your assets when you pass away, thus reducing the amount of your estate, and any applicable estate taxes.

Access to assets

You can pay yourself from your trust! With a little clever wording you can set up your trust so that your assets are “property” of the trust, but that your trust can also pay you on any income it generates.

Don’t move forward with creating your trust until you’ve consulted with a Florida estate planning attorney.

As with all estate planning preparation, it is in your and your heirs’ best interests to you consult with an attorney experienced in Florida estate planning and trusts. At Rodriguez Law, P.L., our dependable team can assist you in creating or making changes to any estate planning documents. We can also offer guidance and advice unique to your individual circumstances, and prepare the perfect plan for your needs. Contact us here or give us a call at (305) 262-8226. We’re here to help you!

7 Benefits of Having an Attorney Help You Close on a Real Estate Purchase

By Rodriguez Law, P.L. • May 19, 2019
If you have ever thought about NOT hiring an attorney for closing on a real estate purchase, unless you are paying cash, you are setting yourself up for a headache. Mortgages require more than a little bit of paperwork, enough so that you will be signing papers for at least an hour – with an attorney’s help. Without one? It’s a risk, and it may not be worth it, especially if you are buying a home. Having that massive amount of paperwork organized and ready for your signature is a great benefit, but it is hardly the only good thing about having an attorney who has your back during closing. Here’s why:

Understanding the Appraisal Process in a Real Estate Sale

By Rodriguez Law, P.L. • April 19, 2019
If you’re thinking about buying, selling, or refinancing your home in order to take advantage of a better interest rate, the appraised value of your property is an important number. An appraisal will help determine how much you will likely be able to get for your home if you sell, or in the case of an refi, which usually only allows a portion of the property’s value to be included in a new loan, will determine how much a lender will be willing to loan you, since the loan received from a refi usually only includes a percentage of the home’s value. Appraisers are working on behalf of the lender and will assess the value of your property based on the value of similar properties in your neighborhood. Comparable properties usually must be located within a few miles of the property being assessed, must be of similar square footage, and should be built within 10 years or so of the property in question.

8 Items a Title Search Might Uncover

By Rodriguez Law, P.L. • March 19, 2019
Buying a home or property is a major investment, often the biggest one of your life, and taking the right steps to ensure that the home is free from any encumbrances before you make the purchase will protect you and allow you to enjoy your new asset for years to come. Some of the most important things to think about include hiring an inspector to check for safety issues, making sure the property is priced fairly compared to other homes in the neighborhood, and doing a title search to determine that there are no limits on how you might use your land or if someone else’s name is attached to the home or property. A title search – which involves retrieving the court documents associated with the home or land, such as liens or easements – can prevent you from buying your dream home, only to find out that you have suddenly become the owner of someone else’s debt along with the home. While it is possible to determine whether or not your home is free from liens or other constraints on your own by going over courthouse files or visiting the assessor’s office in the county where the property is located to view records, title issues can be complicated, and hiring an experienced real estate attorney will not only save you a lot of legwork, but will also make sure that you don’t miss something on your own by ensuring that your home is free from legal issues. Title searches essentially determine whether or not the home you are buying is free from liens or can be legally sold by the person selling the home, in case ownership is disputed. Here are eight important things that a title search might uncover:
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