TThis arrangement is made when all or a portion of a home or other real property is given to the charity while you are alive. Until death you enjoy the use of the property. Upon your death the property belongs to the charity and you receive a charitable income tax deduction for the value passing to the charity. The property is also removed from your taxable estate for estate tax purposes.

Yes, a life insurance policy (new or existing) can be donated to a charity by making the charity the owner and the beneficiary. An income tax deduction will be allowed for the contribution.

Generally, yes, if the asset is owned either as tenants-by-the-entirety (for husbands and wives) or joint tenants with right of survivorship. However, at the death of the survivor, the assets will be exposed to the probate process unless the survivor adds another joint owner.

There are several types of Ajoint@ ownership in Florida. Some typical types are: Joint Tenancy with Right of Survivorship is allowed in Florida, but to be sure that the parties intended survivorship, which could result in the disinheritance of other family members, Florida law requires that the title to such property specifically state: "John Brown and Henry Brown, as joint tenants with right of survivorship and not as tenants-incommon." Otherwise, the ownership may be construed as tenants-in-common and the interest will pass under each owner's will.

Tenancy-by-the-Entirety is joint ownership of property by a husband and wife and provides that the survivor will own the property upon the death of the other spouse. Neither spouse can sell, gift or convey their undivided one-half interest without the joinder of the other spouse.

In Florida, real property titled in the name of husband and wife is presumed to be tenants-by- the-entirety property unless there are more people on the deed. However, it is a good idea to title any future joint purchases of real property by spouses as follows: "John Brown and Mary Brown, Husband and Wife, as tenants-by-the-entirety."

In Florida, personal property titled in the name of husband and wife is not always presumed to be tenants-by-the-entirety property. Therefore, personal property should also be titled: "John Brown and Mary Brown, Husband and Wife, as tenants-by-the-entirety."

Tenants-in-Common does not have the element of survivorship. Property owned in this manner will pass under an owner's will upon death. Florida law will construe tenantsin- common in situations where non-spouses are involved and it is not clearly survivorship property. A suggested title so as to avoid tenancy-in-common treatment is: "John Brown and Henry Brown, as joint tenants, with right of survivorship and not as tenants-incommon."

If a joint owner is involved in litigation with creditors, such as the IRS, or the victimof an automobile accident with that joint owner, then the jointly-owned property may be subject to attachment by those creditors, even if that joint owner really is on the title only to avoid probate.

If a joint owner becomes incapacitated, and the property is jointly-owned real estate, then a court appointed guardian may have to be obtained to sell the real estate. The family of the first joint owner to die may be disinherited because the property will pass by operation of law to an unrelated surviving joint tenant. There can be a great deal of tax uncertainty with respect to whether a gift is made when a joint account is set up and who should pay the income tax on interest earned by a joint account

Life insurance, health insurance, long-term care insurance, umbrella liability and disability insurance are examples of kinds of insurance you may need.

Life insurance proceeds can pay estate taxes and other expenses in settling an estate. Annual premiums used to purchase life insurance to pay estate taxes can provide a large payoff for low premiums. A major financial obligation of an estate can be estate taxes. Federal estate taxes must be paid within nine months of the date of death. Estate taxes can be substantial, currently as high as 45% of the taxable estate. Life insurance can provide the liquidity needed to pay the tax.

Life insurance proceeds are not usually part of a decedent's probate estate but are included in a decedent's gross estate for federal estate tax purposes. If your estate is the named beneficiary, or if no named beneficiary survives you, then the life insurance proceeds become part of your probate estate. Inclusion in the gross estate for estate tax purposes could dramatically increase the size of the estate and the amount of estate taxes that must be paid.

Life insurance proceeds paid on a policy, held in an irrevocable life insurance trust, are usually not included in the decedent's gross estate. The trust owns the life insurance policy and is the designated beneficiary. If the insured has no Aincidents of ownership@ in the policy, then it will not be included in his or her taxable estate. It is important to note that any legal right to control a life insurance policy, such as the right to borrow from the policy or designate the beneficiary, can cause the policy to be subject to estate tax.

If your estate is taxable, then a life insurance trust should be seriously considered. The use of an irrevocable life insurance trust is preferable to giving a policy to an individual outright. Giving a policy to your spouse may cause the policy to be included in your spouse's estate and to revert to your (the insured's) estate should your spouse die before you. If the life insurance policy is transferred within three years of the insured's death, then the proceeds will be included in the insured's estate. Giving ownership to another will cause a loss of control over the policy. The new owner could change the beneficiaries, take the cash value, and even cancel the policy. For married individuals an irrevocable trust can provide benefits to the surviving spouse for his or her health, education, support and maintenance. The assets remaining at the spouse's death can still pass estate tax free to children or other designated beneficiaries.

It may be best to purchase a new policy to fund the trust. Otherwise, a gift of existing policies would be subject to the three year rule and be included in your gross estate. However, if you are no longer insurable, or purchasing a new policy will be very expensive, then it may be best to gift existing policies to a trust subject to the three year rule.

If the proceeds of policies will be included in your estate, and if you have a surviving spouse, then these monies will be eligible for the marital deduction and therefore defer the tax on the policies. You should name a contingent beneficiary, such as adult children. If a minor child is a beneficiary, then name a trust for the minor as the beneficiary. This can be a revocable living trust if you have one or a trust created under your will.

Serving as trustee is no simple task. While very important, prudently investing trust assets is not a trustee's only responsibility. The job's scope is generally much broader. Your trustee's exact powers and duties will depend on the instruction in your trust agreement but, in general, your trustee will:

Hold trust property

Invest the trust assets

Distribute trust income and/or principal to the beneficiaries, as directed in the trust agreement

Make tax decisions concerning the trust

Keep records of all trust transactions

Issue statements of account and tax reports to the trust beneficiaries

Answer any questions and the beneficiaries may have concerning the trust

Make reports to the probate court when necessary

A corporate institution should be considered as trustee of a revocable trust because of its permanence, safety, experience, group judgment and investment expertise. Unlike individuals who might not outlive you or who might move away, a corporate institution continues on and would remain available to handle the trust administration. If desired, a corporate institution can also serve as co-trustee with a designated individual, such as a family member.

In administering a revocable trust the corporate institution receives the assets and arranges for the transfers of title into trust registration. The corporate institution safeguards the trust assets, collects income when due, and distributes income and/or principal as requested or needed by the trust beneficiaries. If the grantor becomes incapacitated, then the corporate institution can pay his or her bills directly from the trust and collect any applicable medical insurance reimbursement.

An investment objective is established by the corporate institution and the grantor. The corporate institution's investment officers then periodically review the trust portfolio and make any recommendations they feel will better accomplish the objectives. Upon the grantor's death the corporate institution pays any final debts, taxes and expenses and then distributes the remaining assets as directed by the trust agreement. Most corporate institutions publish a fee schedule detailing the charges for the various services involved in administering a trust.

You can name almost anyone as your trustee. Your spouse, a sibling, a friend, a business associate or even yourself as long as the person named has reached the age of majority and is not legally disqualified from serving. You can also name a corporate trustee, such as a bank or trust company. How much authority you give your trustee depends on your trust document as you and your attorney determine. Your trustee may have broad powers or very limited powers. In any case, your trustee, as a fiduciary, is held by law to a strict standard of care in performing trust functions.

There are a complex set of rules governing qualification for Medicaid assistance. In general, there are stringent asset requirements and restrictions on asset transfers by the person trying to qualify. There are also certain exemptions for individuals and their spouses. The rules are too complex to explain in this limited space. If you are interested in more details, then it would be advisable to see an attorney that specializes in this area.

Under the Florida constitution a person's personal residence or homestead is entitled to certain protection. First, a person's homestead is not subject to claims of creditors. Thus, a creditor cannot force one to sell one's home to pay off one's debts. This applies even if a person has filed bankruptcy. A person's homestead is also eligible for a $25,000 annual exemption against the assessed value for purposes of calculating the ad valorem taxes on the property. The homestead is also subject to the favorable  save our home cap which limits annual increases in real estate taxes.

There are also restrictions on how a person's homestead may be devised at death. If a person is survived by a spouse and minor children, then the surviving spouse must receive a life estate in the property with the minor children taking a remainder interest. If the decedent is survived by a spouse, but no minor children, then it may be devised outright in fee simple to the surviving spouse. If the property is not devised in fee simple, outright to the surviving spouse, and the decedent is survived by lineal descendants, then the spouse will receive a life estate and the lineal descendants will receive the remainder. The surviving spouse will take the entire property if it is held as tenants-by-theentirety (husband and wife) regardless if there are minor or adult children.

If the decedent is survived by lineal descendants, but no spouse, and there is no devise of the homestead, then the lineal descendants will take the property as tenants-incommon. Finally, if the decedent is not survived by a spouse, and has no minor children, then the homestead may be devised to whomever the decedent has designated in his or her will.

An "elective share" is the right of a spouse to elect against the provisions of a will and/or trust. On October 1, 2001, the legislature changed the law regarding the right of a spouse to make an Aelective share.@ Prior to the change a spouse generally had the right of a 30% elective share of the probate assets. If no assets were distributed through probate (i.e., if all of the assets were in an revocable trust), then a spouse would get 30% of zero which was nothing. The legislature changed this law now providing that the 30% is based upon a total of all of the  elective share estate of the decedent, not just the probate assets in a certain order under the statute. Basically, the law calculates the amount of the elective share and then satisfies that amount with assets. For example, if an estate is worth $1,000,000, then a spouse would be entitled to $300,000. If the spouse did not otherwise receive that amount, (other than the homestead), then he or she can make an election to take the elective share. The $300,000 is then satisfied with assets distributed to the spouse directly, including, but not limited to, life insurance, IRAs, pension plans and trust assets. The statute then provides for the distribution of certain assets, such as real estate and assets in trust, etc. to the spouse.

The generation-skipping tax is a tax in addition to gift and estate taxes. The tax is imposed on transfers that Askip@ generations. The generation-skipping tax laws are very complex. Each individual may exempt $2,000,000 from this tax. A typical generationskipping transfer would be as follows: a trust is created by an individual which provides the individual's son with income and upon the son's death the trust property passes to the grandchildren. The trust property is not subject to tax in the son's estate, thus "skipping" a generation level of estate taxes. The tax also applies to a direct transfer of property froman individual to his or her grandchildren.

Careful planning in naming the beneficiaries of your plan is important. Estate tax and income tax impact of the designations must be considered. Funds contributed to the plan by an employer have been previously excluded from income taxation. Upon death your vested balance in a plan is included in your taxable estate. Your beneficiary will also be subject to income tax on the benefits. Some death benefits are excluded from the income tax and you may also receive a credit for estate taxes paid on the retirement plan assets. Only a surviving spouse may rollover the distribution to his or her own IRA which allows the surviving spouse to defer paying income tax on the distribution until he or she begins withdrawals from the rollover IRA. Since taxation in this area is very complex proper evaluation is imperative if assets in a plan are significant.

This is a statutory provision for holding assets for the benefit of a minor. Since minors are unable to own property the law allows you to designate a "custodian" to be responsible for the assets until they reach majority. If a minor receives property by will, and it is held by a custodian for the minor's benefit, then the minor will be entitled to receive the property when he or she turns 18. However, if you specifically designate a custodian for gifts made to the minor during your lifetime, or to receive distributions fromyour estate upon your death, then the assets can be held by the custodian until the minor is 21. The custodian is authorized to use the assets for the minor's education and other necessary expenditures.

If you are the only person authorized to enter the box, then a court order must be obtained to enter the box and remove any contents. However, if you have other authorized signers, such as a spouse or children, then they may access the box after your death or in the event of your incapacity. Florida does not "freeze" safe deposit boxes like many other states.

Generally, the 2001 Tax Act provides the largest tax cut since 1981 for individuals, mainly in the form of tax benefits (i.e., income tax rate reductions; increases in the child tax credit; decreases in the federal "death tax"; greater retirement savings incentives, including increases in the contribution limits to individual retirement accounts (IRAs); employersponsored retirement programs, such as 401(k) plans; several education related tax benefits; and individual alternative minimum tax (AMT) relief).

Under the 2001 Tax Act estate tax rates are reduced and the exemption amount is increased between 2002 through 2009. In 2010 there is complete repeal of the estate tax; however, as discussed below, the current estate tax systemwill be reinstated in 2011 due to the "sunset" provision. The following chart indicates the numbers:

Estate Tax Exclusion Amt/

Year	Top Estate Tax Rate	Credit Equivalent	Gift Tax Exemption Amt
2001	55%	$675,000 ($220,550)	$675,000
2002	50%	$1 million ($345,800)	$1 million
2003	49%	$1 million ($345,800)	$1 million
2004	48%	$1.5 million ($555,800)	$1 million
2005	47%	$1.5 million ($555,800)	$1 million
2006	46%	$2 million ($780,800)	$1 million
2007	45%	$2 million ($780,800)	$1 million
2008	45%	$2 million ($780,800)	$1 million
2009	45%	$3.5 million ($1,455,800)	$1 million
2010	repealed	N/A	$1 million
2011& thereafter	55%	$1 million ($345,800)	$1 million

While the gift tax rates mirror the estate tax rates through 2009, the increase in the gift tax exemption is limited to $1 million. Accordingly, the existing unified transfer tax system will become more complex as the estate tax exemption increases, reaching $3.5 million by 2009. While the estate tax is repealed in 2010 (for only one year) the 2001 Tax Act retains a gift tax to prevent excessive gifts of appreciated property from high income tax bracket taxpayers to low income tax bracket taxpayers. In 2010 gifts in excess of the lifetime $1 million exemption will be subject to gift tax at the top individual income tax rate at the time of the gift (under the 2001 Tax Act, 35%).

Beginning in 2004, the 2001 Tax Act also coordinates the generation-skipping transfer tax ("GSTT") exemption to the estate tax exemption and repeals the GSTT tax in the year 2010 and reinstates the GSTT in 2011. In 2002, the 2001 Tax Act repeals the 5% surtax that applies to large estates (i.e., estates valued at more than $10 million). In 2004, the deduction for qualified family- owned business interests also is repealed. An immediate impact of the 2001 Tax Act on plans for married couples occurred because many Revocable Trusts, which are created to save estate taxes, create a Family Part and a Marital Part that are funded by a formula at the death of the first spouse. Generally, the funding formula provides that the Family Part is funded with the applicable exclusion amount (in 2001 the amount was $675,000) and all remaining assets fund the Marital Part. Because the applicable exclusion amount will be increasing drastically between now and 2009, under the traditional funding formula a greater proportion of the estate will fund the Family Part (rather than the Marital Part). THUS, IT IS IMPERATIVE TO REVIEW THE VALUE OF YOUR ASSETS AND YOUR DOCUMENTS TO BE SURE THE FUNDING IS CONSISTENTWITH YOURWISHES . An alternative is to limit the Family Part to a percentage or dollar amount so that the spouse knows that his or her Marital Part will be funded.

Faced with the prospect that an individual may die before repeal of the estate tax, or after repeal if the current transfer tax rules are reinstated, an individual=s future estate planningmay need to use a two-pronged approach: one plan if the individual dies when the estate tax is repealed (currently only in the year 2010) and one plan if the individual dies while an estate tax is still imposed. This determination will need to be made on a case-bycase basis because each family=s goals may be different. Remember also that further changes are almost a certainty.

Furthermore, upon an individual=s death, his or her assets generally receive a "stepped-up" basis to their date of death value. Thus, if a beneficiary immediately sells an inherited asset, little gain or loss will result. Subject to a few exceptions described below, when the estate tax is repealed in 2010, the 2001 Tax Act will require the person acquiring property from a decedent to retain the decedent=s basis in that property (i.e., carryover basis). Under the 2001 Tax Act, however, each decedent is allowed a $1.3 million exemption from this carryover basis rule, thus assets may continue to receive a "step-up" in basis of up to $1.3 million above the basis in the hands of the decedent. For married couples, there is an additional $3 million "step-up" available for transfers to a surviving spouse. Estate planning documents may need to be revised prior to 2010 to take advantage of the limited basis "step-up" opportunities. Again, due to the Asunset@ provisions, when the current estate tax rules are reinstated in 2011, the automatic Astep-up@ basis rules will be reinstated as well. Nonetheless, it may be prudent to ensure that all tax basis records are retained until an asset is sold.

One final aspect of the legislation merits comment. Technically the changes made by the new law, including the "death tax repeal," will cease to apply after 2010. This highly unusual provision was included to insure technical compliance with the federal budget law. The lawmakers obviously assume that this provision will be eliminated in future legislation. As of 2007 many tax bills have been proposed but none have passed. The most recent legislation proposed House Bill 3170 on July 24, 2007 and proposes the following:
(1) Coordinating the gift tax credit with the estate tax credit

(2) Increasing the applicable exclusion amount as follows:

2010 $3,750,000
2011 $4,000,000
2012 $4,250,000
2013 $4,500,000
2014 $4,750,000
2015 $5,000,000
and thereafter
(3) Rates double as estate increases over $25,000,000
(4) Inflation adjustments
(5) Carryover of unused applicable exclusion amount by surviving spouse