The Law Blog

How do you protect Apple Products from the Probate process?

jessica@speniklaw.com (Jessica Spenik) — Mon, 12 Dec 2022 22:53:09 GMT

A little known feature can grant a loved one access to your account in the event of your death.

What is a Legacy Contact?

A Legacy Contact is someone you choose to have access to the data in your Apple account after your death.

In newer editions of Apple products, you can add a Legacy Contact for your Apple ID. Adding a Legacy Contact is the easiest, most secure way to give someone you trust access to the data stored in your Apple account after your death. The data may include photos, messages, notes, files, apps you've downloaded, device backups, and more. Certain information, like movies, music, books, or subscriptions you purchased with your Apple ID, and data stored in your Keychain—like payment information, passwords, and passkeys—can’t be accessed by your Legacy Contact.

Your Legacy Contact can be anyone you choose, and you can designate more than one Legacy Contact. They don’t even need an Apple ID or an Apple device.

To file an access request after you pass away, they'll just need:

The access key that you generate when you choose them as your contact
Your death certificate

Apple reviews requests from Legacy Contacts and gives them access to your Apple account data only after verifying this information. When access is approved, your Legacy Contact receives a special Apple ID that they can set up and use to access your account. Your Apple ID and password will no longer work, and Activation Lock is removed on any devices that use your Apple ID.

To add a Legacy Contact for your Apple ID, you need:

An Apple device running iOS 15.2, iPadOS 15.2, or macOS Monterey 12.1 that you’re signed in to with your Apple ID.
Two-factor authentication turned on for your Apple ID.
To be over the age of 13.

Your Legacy Contact can be anyone you want. They can be any age, and they don’t need to have an Apple ID or an Apple device.

Please visit this link for more specific and detailed information on setting up your device properly.

How do Cryptocurrency and NFTs fit into my Estate Plan?

jessica@speniklaw.com (Jessica Spenik) — Tue, 11 Oct 2022 16:14:04 GMT

Learn how to plan for these important investments....

Five years ago, cryptocurrency was probably not on your radar. Today, it may be an important investment in your portfolio. You could even own some nonfungible tokens (NFTs), which are powered by the same blockchain-based technology. Despite the dizzying fluctuations in the value of these assets, you should ensure that they are included in your estate plan so you can preserve them for your heirs.

Preserving Cryptocurrency: Now and Later

Cryptocurrency, which is digital money, is exhibiting stability as part of the global financial landscape, even though the value of individual coins (units of cryptocurrency) has been notoriously volatile. The overall market hit $3 trillion in value in 2021, only to lose $2 trillion in value so far in 2022. Emerging from the ashes of the 2008 financial disaster, cryptocurrency is likely to retain its status as an investment option because its holders enjoy freedom from government and bank control.

This advantage can become a drawback when it comes to preserving cryptocurrency. Before you consider including cryptocurrency in an estate plan, it is imperative that you hang on to your digital cash on a day-to-day basis. This involves preserving the passwords and digital wallets (storage units) connected to your cryptocurrency. This will avoid a disastrous situation like the one that befell a Welsh man who accidentally threw away half a billion dollars’ worth of Bitcoin. ^[1] Consider the following options to preserve your cryptocurrency:

● Hot wallet: An online app that provides convenience but is vulnerable to being hacked or stolen

● Cold wallet: An offline storage device that avoids hacking but is a small item and easily misplaced

● Custodial wallet: A third-party crypto exchange that holds your coins, avoiding the risk of losing the device, although the company could freeze your funds or be the target of a cyber attack

● Paper wallet: A printed list of keys and QR codes that is safe from hackers but easily misplaced

Tax Consequences to Consider

Another important consideration is that the Internal Revenue Service (IRS) considers cryptocurrency to be property rather than currency. That means it is subject to capital gains tax. Whether the owner holds it for longer than twelve months determines whether the IRS will assess short-term or long-term capital gains tax. Exchanging cryptocurrency for fiat currency (a country’s official money) is a taxable event, as is exchanging one kind of cryptocurrency for another (e.g., exchanging Bitcoin for Ether). If you are in the business of selling or creating cryptocurrency (called “mining”), ordinary income tax rates will apply.

What about NFTs?

NFTs are unique digital collectible items. They are based on the concept “I own this.” It does not matter what “this” is, just that it is valuable or may gain value someday. That is why various digital collectible assets, such as the following, can be characterized as NFTs:

● Digital artwork

● Video clips

● Social media posts

● Memes

● Gaming tokens

● Digital real estate

While being the owner of the virtual Pyramid of Giza may seem silly today, who knows how much it will be worth tomorrow? This makes a little more sense when we think about emerging technologies like virtual reality, augmented reality, and metaverses. While the NFT market seems to have collapsed recently, ^[2] you never know when it will bounce back or if something similar will take its place.

How Crypto and NFTs Fit into Your Estate

Plan

Talk to us about cryptocurrency and NFTs, even if you have not yet purchased your first Dogecoin or CryptoKitty. We can help you keep taxable events to a minimum and preserve your digital assets as part of your overall estate plan while maintaining your privacy.

^[1] D.T. Max, Half a Billion in Bitcoin, Lost in the Dump, New Yorker (Dec. 6, 2021), https://www.newyorker.com/magazine/2021/12/13/half-a-billion-in-bitcoin-lost-in-the-dump .

^[2] Stefan Ionescu, The NFT Market Collapse: What Happened, and What Can We Learn From It?, MakeUseOf.com (Jul. 4, 2021), https://www.makeuseof.com/nft-market-collapse-lessons-learned/ ..

My Loved One Has Died - What Do I Do Now?

jessica@speniklaw.com (Jessica Spenik) — Tue, 08 Feb 2022 16:33:09 GMT

When a family member or other loved one dies, grief and shock can sometimes be overwhelming....

When a family member or other loved one dies, grief and shock can sometimes be overwhelming. The last thing most people want to think about is making phone calls or funeral arrangements. Some things do not need to be done immediately, but there are some steps that should be taken soon after the loss of your loved one. We hope the following guide will help facilitate this process during a stressful and emotional time.

(1) In the immediate minutes and hours after your loved one passes away, you do not need to do anything. It is okay to sit with your loved one for a while, even if your family member died in a hospital. Just let the hospital staff know if you need a little time or if there are any religious rituals or customs that you would like to observe before your loved one is moved. It is important to give yourself time to call your pastor, priest, rabbi, or other religious advisors, as well as close family members or friends whose presence will be comforting.

Note: One exception is if your loved one wanted to be an organ donor. In this case, the hospital where the death occurred, or if the death occurred at home, a nearby hospital, should be notified almost immediately so the appropriate steps can be taken. If you are not sure, check your family member’s driver’s license or health care directives. Even if your loved one has signed up for organ donation in a state or national registry, family members are responsible for making a final decision if a doctor lets you know that your loved one’s organs are medically suitable for donation.

(2) As soon as you can, you should obtain a death certificate. A death certificate is a legal form that you must obtain before some of the later steps can be taken.

(3) Make arrangements for the body to be picked up, typically by a funeral home. If your loved one died in a hospital or nursing facility, the staff may be able to make those arrangements for you. Your loved one may have already chosen a funeral home and made funeral plans, but if not, the choice of a funeral home will be made by family members.

(4) If necessary, arrange for care for any dependent children, adults, and pets in accordance with your loved one’s will or nomination of guardian, which should address those issues. If there was no will or guardianship nomination, you may have to request that a court issue an emergency order to ensure that any children or dependent adults are properly cared for and protected.

(5) Make arrangements to lock up your loved one’s house and car, and if the home will remain vacant, notify the police or the landlord to keep a closer eye on it. A friend or family could also regularly check for mail or phone messages, clean out perishable food, and water plants.

(6) Find out if your loved one made pre-arrangements for a funeral or memorial service, and if not, ask a family member or friend to help you make those arrangements. If your family member was a member of the military, let the funeral home know if you would like a military funeral and it can make those arrangements. Also, prepare an obituary and send it to the local newspaper and any other newspapers in which you would like for it to appear.

Once you have taken care of these initial concerns, it is time to begin the estate or trust settlement process--also called probate or trust administration. Although taking care of some aspects of administration on your own may seem simple, this process can actually be quite complex, and small mistakes can lead to a major headache down the road. It is important to contact an experienced probate and trust administration attorney to help you with the process, as well as any other legal matters that may arise during this difficult and emotional time.

Contact us as soon as you can, and we will help guide you through the legal process so you and your family members can focus on moving through grief toward healing.

How Can I Support the Elderly Community?

Mon, 03 Jan 2022 23:15:17 GMT

Elves for Elders is a wonderful way to support our Elders.

The Spenik Law Firm was excited to participate in Elves for Elders for the second year. Elves for Elders is a wonderful program that supports our community in such a special way.

We want to thank all of our amazing clients for making our participation possible and also thank you to those that donated gifts as well.

It is time to remember those among us in our communities who have suffered life changing events, injury, illness, or those who are disabled. These individuals, requiring care, will be spending the season in care facilities. “Elves for Elders” is a program created to provide these seniors, veterans, and disabled adults with the items they need, as a gift, so that they too can share in the spirit and joy of the season!

The items that they need replaced are simple items that we often take for granted such as new clothing items, hygiene items, shoes, sensory and social stimulation items, books to read and activity books. Please visit our web site http://www.aging-solutions.org/elvesforelders.html or contact Aging Solutions, Inc. at 321-768-7997.

These items can also be donated throughout the year so please visit http://www.aging-solutions.org/elvesforelders.html to learn more about how you can give back!

What is Estate Planning?

Mon, 03 Jan 2022 20:46:17 GMT

Estate Planning

It is hard to imagine what life will be like when we are no longer a part of it. It is hard to imagine what life will be like for our loved ones when we die. A figure published in a Fidelity article from May 2019, stated that nearly half of Americans do not have a Will, and even fewer have an Estate Plan. Estate Planning is not always a popular subject, due to what it requires us to "imagine" and plan for. Some of you may not have had time to realize the benefits of having an Estate Plan, or how greatly having Estate Plan can lessen the burden on your loved ones after you are gone and in certain cases, when you are still alive but no longer able to make decisions for yourself.I recommend that each individual examine their individual situation and consider whether they should make an Estate Plan.There are several life events/personal wishes that indicate that an Estate Plan could benefit you greatly.

These can include:

The arrival of children.
The purchase of real estate.
Owning a business and succession planning.
Upcoming travel plans.
Having minor children.
If you have any upcoming medical procedures or treatments.
Having a desire that some money go to charities.
Individuals going through a divorce or recently divorced.
New married couples.
The desire to leave specific sentimental items to specific named individuals.
Have specific requests for your pets.

While the list is not all inclusive, please do not hesitate to reach out to me personally or place a call to my office to schedule an individualized consultation so that we can determine the appropriate Plan for the future of you and your loved ones.

What Estate Planning Terms Should I Know?

Mon, 03 Jan 2022 19:40:00 GMT

To help prepare you for the Estate Planning process, we have compiled a list of helpful terms.

Estate planning —it is an incredibly important tool, not just for the uber wealthy or those thinking about retirement. On the contrary, estate planning is something every adult should do. Estate planning can help you accomplish any number of goals, including appointing guardians for minor children, choosing healthcare agents to make decisions for you should you become ill, minimizing taxes so you can pass more wealth onto your family members, and stating how and to whom you would like to pass your estate on to when you pass away.

While it should be at the top of everyone’s to-do list, it can be an overwhelming topic to dive into. To help you get situated, below are some important terms you should know as you think about your own estate plan.

Assets
Generally, anything a person owns, including a home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, art, clothing, and collectibles.

Beneficiary
A person or entity (such as a charity) that receives a beneficial interest in something, such as an estate, trust, account, or insurance policy.

Distribution
A payment in cash or asset(s) to the beneficiary, individual, or entity who is entitled to receive it.

Estate

All assets and debts left by an individual at death.

Fiduciary

A person with a legal obligation (duty) to act primarily for another person’s benefit, e.g., a trustee or agent under a power of attorney. “Fiduciary” implies great confidence and trust, and a high degree of good faith.

Funding

The process of transferring (re-titling) assets to a living trust. A living trust will only avoid probate at the trustmaker’s death if it is fully funded, meaning it contains all of the decedent’s assets.

Incapacitated/Incompetent

Unable to manage one’s own affairs, either temporarily or permanently; often involves a lack of mental capacity.

Inheritance

The assets received from someone who has died.

Living probate

The court-supervised process of managing the assets of an incapacitated person. Conservatorship is another term used for this process.

Marital deduction

A deduction on the federal estate tax return, it lets the first spouse to die leave an unlimited amount of assets to the surviving spouse free of estate taxes. However, if no other tax planning is used and the surviving spouse’s estate is more than the amount of the federal estate tax exemption in effect at the time of the surviving spouse’s death, estate taxes will be due at that time.

Settle an estate

The process of winding down the final affairs (valuation of assets, payment of debts and taxes, distribution of assets to beneficiaries) after someone dies.

Trust

A fiduciary relationship in which one party, known as the trustmaker or settlor, gives another party, known as the trustee, the right to hold property or assets for the benefit of another party, the beneficiary. The trust should be memorialized by a written trust agreement, outlining how the trust assets will be distributed to the beneficiary.

Will

A written document with instructions for disposing of assets after death. A will can only be enforced through a probate court. A will can also contain the nomination of guardian for minor children.

How Can I Provide for My Pets in My Estate Plan?

Fri, 10 Dec 2021 20:20:10 GMT

"Such short little lives our pets have to spend with us, and they spend most of it waiting for us to come home each day. It is amazing how much love and laughter they bring into our lives and even how much closer we become with each other because of them.”

- John Grogan

Pet Trusts

Pets are often regarded as members of the family and clients often wonder what will happen to their pets when they are no are no longer living. The Spenik Law Firm is passionate about furry family members and we feel equally passionate about creating a plan for their future care.

Pet trusts are one of the tools we are able to utilize to create a plan for your pet. We often hope that our family or loved ones will be able to care for our pets, but a great Estate Plan plans for the unexpected and ensures that your pets will be cared for under any circumstances.

Florida Pet trusts have three main provisions:

The trust must benefit a pet that is alive during the lifetime of the individual creating the trust, and the trust only operates until the death of the last surviving pet beneficiary.
The terms of the trust may be enforced by:
* A person appointed by the creator of the trust;
*If no person was appointed, then by a person appointed by the court.
*Any person that has an interest in the welfare of the pet(s) may request the court to appoint a person to enforce the trust or to remove a person already appointed.
If the value of the trust exceeds the amount needed to care for the pet(s), except as otherwise provided in the terms of the trust itself, the excess must be distributed to the creator of the trust, if living, otherwise as part of the trust creator’s estate.

Call us today at 321-223-5225 to discuss your Estate Plan and how we can assist you in creating a plan that protects you and all of your family members.