ESTATE PLANNING
Disclaimer: None of the information below is to be
construed in any way as legal advice, nor is it to be used as a substitute for
a face to face consultation with a qualified attorney. Readers are highly encouraged to obtain
independent counsel from their own attorney before executing any of the
documents mentioned in the Estate Planning Basics section below.
Table of Contents:
Introduction
Estate Planning Basics
Emergency Checklist
Bereavement Planning/Funeral Checklist
ENCL : Important phone numbers/contact info
INTRODUCTION
Estate Planning incorporates both pre- and post-death
planning considerations. Emergency planning is clearly essential to the
post-death planning area; however, to make emergency planning meaningful,
considerable thought should go into the pre-death planning phase.
Pre-death planning should include a total inventory of all
assets and a detailed breakdown on how the assets are titled. Current wills,
trusts, durable powers of attorney, advance health care directives and
memoranda on how certain personal assets (such as jewelry, furniture, pictures,
family albums, etc.) should be distributed. This list should be updated as
required.
The next step is to determine the total value of the estate.
It must account for all assets to include insurance policies, annuities,
securities, real estate and personal property. A qualified attorney should review all estate
plans. Regardless of the size of the estate, the possible use of a revocable
trust should be discussed with your attorney. Proper planning may not only save
many legal fees, taxes, probate, family feuds and problems, but also facilitate
post death administrative requirements.
One's death and desired funeral arrangements are often not
discussed in detail. Written instructions that clarify the expressed desires of
individuals are invaluable. In addition, the making of funeral arrangements is
greatly facilitated when the desires of the deceased are known and so recorded.
Pre-death payment of funeral expenses can at times be advantageous to lock in a
discounted fee/cost.
ESTATE PLANNING BASICS
NOTE: The information
below applies to Florida
residents.
What is a will?
A will is a legal document that dictates the disposition of
a person’s probatable assets upon his or her death. Probatable assets are
all assets owned by the decedent in his or her sole name at the time of death
and the decenent’s share of those assets owned jointly with others without
provisions for ownership passing by right of survivorship to the joint owner(s). Assets held jointly with others with rights
of survivorship, such as a homestead owned by husband and wife, or assets held
with a proper designation of beneficiaries, such as a brokerage account with
designated beneficiaries, are not probatable assets and pass to the surviving
joint owner(s) or to surviving designated beneficiaries by operation of law,
without having to go through a probate administration. Assets held in trust are also not probatable
assets. Probatable assets must go
through a probate administration in the court system. A proper will designates a person or persons
as executor (in Florida, personal representative) of the estate, who makes
certain required notices and accountings, pays valid debts of the estate, and
distributes the remaining probate assets to the beneficiaries named in the
will, all under the supervision of the court.
According to the Florida Rules of Probate, a personal representative
must be represented by an attorney, except in rare cases, such as when the
personal representative is the sole beneficiary and there are no
creditors. If a person dies without a will and owns probatable
assets, there is a probate administration in court just as when there is a
will. The court appoints the personal
representative. The personal
representative’s final distribution of estate assets is made in accordance with
set provisions of the probate law.
What is a living will and what is an advanced health care
directive?
A living will is a legally binding document which dictates
one's wish on limiting the use of artificial life support systems if (in
Florida) one is in a terminal condition, an end-stage condition, or a
persistent vegetative state. An
advanced health care directive is like a power of attorney designation where
the designated agent (in Florida, health care surrogate) is given the authority
to make health care related decisions, such as consent to surgery, if the
principal is unable to make those decisions due to some sort of incapacity.
What is a power of attorney and what is a durable power of
attorney?
A general power of attorney is a document in which the
principal (the person signing the document) designates another person as his or
her attorney-in-fact to be able to carry out certain legal operations on behalf
of the principal. The power of attorney
ceases to have any effect if it is revoked in writing by the principal, the
principal dies, or the principal becomes mentally incapacitated. A durable power of attorney remains in effect
if the principal becomes mentally incapacitated. In most estate plans, the principal executes
(signs with all appropriate legal requirements) a durable general power of
attorney.
What is a trust and what is the difference between an
irrevocable trust and a revocable trust?
A trust is basically a contract in which the executing
person, called the settlor, grantor, or trustor, agrees to convey property to a
trustee or trustees for the benefit of named beneficiaries. Unless the trust document provides
otherwise, the trust is irrevocable, meaning it cannot be changed (in most
cases) or revoked once it is executed.
Sometimes irrevocable trusts are used in estate plans, usually due to
tax considerations. A revocable trust,
often called a living trust, can be changed or revoked at any time by the
settlor. The settlor, trustee, and
beneficiary can all be the same person.
Living trusts are widely used in estate plans. Assets held in a trust (irrevocable or
revocable) are not probatable assets, and upon the death of the settlor, are
distributed by the trustee(s) to the beneficiaries in accordance with the
provisions of the trust, free of any probate court proceedings. A trust document is useless unless assets are
actually conveyed to the trustee(s) by the settlor after the document is
executed.
Is it better to have a will or a trust?
The Florida
probate code provides that a personal representative is entitled to
compensation from the estate assets of 3% of the value of the assets up to
$1million, with decreasing percentages for amounts over $1million. Most family personal representatives do not
ask for the compensation. The probate
code also provides that the attorney for the personal representative is
entitled to reasonable compensation, paid from estate assets, for his or her
services. Reasonable compensation for
the attorney is set forth in the code as $1,500 for estates of $40,000 or less,
$2,250 for estates of more than $40,000, but not more than $70,000, $3,000 for
estates of more than $70,000, but not more than $100.000, and 3% on the next
$900,000 of estate value, with decreasing percentages for amounts over
$1,000,000. The personal representative
and the attorney may agree to an attorney fee which does not follow the
statutory scheme. These fees for a probate
administration can be eliminated if probate is avoided through the use of a
living trust. When the settlor of a
living trust dies, there is an administration of the trust, but there is usually
very little court involvement, and the legal fees may be significantly less
than for a probate administration. In
most cases, a living trust costs much more to have prepared than a will. Living trusts are often promoted as being
private, whereas filings in a probate administration are part of the public
record. This is true, but it should be
noted that the most sensitive part of the probate filings, the estate inventory
and accounting are not available to the public unless the member of the public
can demonstrate that they have an interest in the estate. There is a general two year statute of
limitation on claims on a decedent’s property.
This limitation applies if one has a trust. However, the limitation period can be reduced
to three months with the publication of a notice to creditors, which is
available only in a probate administration.
Probate costs can also be reduced or eliminated by owning assets jointly
with right of survivorship or owning assets in vehicles which allow for the
designation of beneficiaries who take the assets by operation of law upon the
owner’s death. There are pros and cons
to both wills and trusts. In the final
analysis, this decision should be reached only after careful consultation with
one’s attorney.
EMERGENCY CHECKLIST/CONSIDERATIONS
It is of utmost importance that both spouses participate in
this planning and are familiar with the location of all pertinent documents. As
a minimum:
Document the location of your wills, discharge papers,
retirement documents, insurance policies (Life insurance,
Long term care, Home and liability policies, Property and Car insurance
etc.)
Have valid durable powers of attorney and health care
directives.
Provide the names and telephone numbers of your attorney,
family physicians, and tax preparer.
List all brokerage houses, mutual funds and bank accounts.
Ensure trusts are funded and assets are properly titled
Prepare appropriate biographies
Keep your executor (in Florida, the personal representative) informed
Keep a list of important phone numbers.
Plan for home care assistance or support. There are
many options available in our local community. Consult your primary health care
provider for the best provider for your specific situation.
In the event of a Medical Emergency - call 911,
Do not drive the patient to the hospital - use the
ambulance service. There is no charge for this service.
In event of death of a military retiree, a Casualty
Assistance Officer may provide key support. Defense Finance and
Accounting Service (DFAS), Cleveland
OH must be notified as soon as
possible of Retiree's Death by calling 1-800-269-5170 or 1-800-321-1080.
See phone/contact sheet at enclosure 2 for other important numbers
FUNERAL CHECKLIST
NOTIFICATION
Family
Friends
Organizations – Church, Fraternal & Veterans
Organizations,
Newspapers
NOTIFY FUNERAL HOME
Secure help from family or friends to take all phone
messages at home.
Speak only to individuals with whom you really want to talk.
Try not to talk to anyone who you do not know personally.
Be especially skeptical of someone wanting money or your
approval to do something in honor of the deceased.
Identify a trusted individual to coordinate funeral
arrangements
Select preplanned times to contact individuals who are
making arrangements for you (they will have a difficult time calling in).
Take extra security precautions at home from now through
completion of funeral activities. Examples: Homes unoccupied at times of
services and viewings.
Where possible identify responsible individuals in advance,
such as chief pall bearer, so they can handle notifications and make
coordination for you.
Points of Contact:
Funeral Home
Church/Chapel - Request meeting with minister conducting
service.
Burial Location/local cemetery/national cemetery
Set time, place of funeral
Confirm Burial Site
Designate & Identify Charities for contributions in lieu
of flowers
Contact appropriate newspapers for publication of obituary
Identify Celebrant and Individual to provide Eulogy
Review Service with clergyman/chaplain
Select other chapel service participants
Select music for march to gravesite and gravesite services
Special prayers or tributes
Confirm honorary pallbearers
Prepare and publish bulletin for services
Review gravesite services
Review funeral home visit
Plan reception following services
Acknowledge condolences
Enclosure
Important Phone Numbers, websites, and e-mail addresses
NOTE: Not all the below numbers are relevant to personal
affairs, estate planning, or survivor assistance. Contact info is always
subject to change.
IMPORTANT PHONE NUMBERS
Defense Finance and Accounting Service (DFAS)
Casualty Reporting
................................................... 800-321-1080
Retired Pay Customer Service
.................................. 800-321-1080
SBP Annuitants
......................................................... 800-321-1080
Note: The Survivor Assistance Office, MacDill AFB offers
comprehensive
assistance. See below:
Coast Guard Retired Pay
........................................................ 800-772-8724
Defense Enrollment Eligibility Reporting System (DEERS)
800-538-9552
Social Security Administration
.............................................. 800-772-1213
Department of Veterans Affairs
............................................. 800-827-1000
Sarasota
National Cemetery
.................................................. 877-861-9840
Medicare Hot Line
...................................................................
800-638-4227
Retired Activities Office, MacDill AFB ...................................
813-828-4555
SURVIVOR ASSISTANCE
Army RSO, MacDill AFB .............................
813-828-0163
Air Force SAO, MacDill AFB ............................
813-828-2503
Navy SAO, MacDill AFB.................................
813-828-2503
Marine Corps SAO, MacDill
AFB................................. 813-828-2503
Coast Guard Retirees and Annuitants
......................... 800-772-8724
MOAA Personal Affairs Dept (ext. #116) .........
800-245-8762
HEALTH CARE
TRICARE Tampa
Office .............................................……............813-902-3000
Beneficiary Services
........................................................................800-444-5445
Claims Customer Service
................................................................800-403-3950
Health Care Finder
.....................................…………….................800-444-5445
Pharmacy
MacDill Hospital
PharmaCare refills…..........................813-828-5367
MacDill BX Mall (Automated PharmaCare refills)
........................800-272-0201
MacDill Immunization Clinic
........................................... ..............813-827-9375
MacDill AFB
Telephone Information
............................................................ 813-828-1110
ID Cards .................................................................................
813-828-2276
Officers Club
...........................................................................
813-837-1031
Honor Guard
...........................................................................
813-828-5190
Space “A” Travel
.....................................................................
813-828-2485
Retired Activities Office (Bldg 205)
......................................... 813-828-4555
Tickets & Tours .......................................................................
813-828-2478
________________________________________________________________________________
MACDILL AFB FACILITY HOURS OF OPERATION
COMMISSARY
(813) 828-4832
Daily 9:00 AM – 7:00 PM
BASE EXCHANGE
(813) 840-0511
Monday- Saturday 9:00 AM – 7:00 PM
Sunday 10:00 AM – 6:00 PM
The Base Exchange is open each day of the year except
Thanksgiving and
Christmas
CLASS VI STORE
(813) 840-2323
Monday- Saturday 9:00 AM – 7:00 PM
Sunday 10:00 AM – 5:00 PM
VISITOR RECEPTION FACILITY
(813) 828-2737
Monday – Saturday 6:00 AM – 6:00PM
After hours, all passes are issued at the Dale Mabry Gate.
PASS & IDENTIFICATION
(813) 828-2278
Monday, Tuesday, Thursday, Friday 7:30 AM – 3:30 PM
Wednesday 7:30 AM – 12:00 PM
Call for appointments on Tuesday, Wednesday, or Thursday.
LEGAL ASSISTANCE
(813) 828-4422/4423
The MacDill
AFB Law
Center, located in Bldg
299, offers a variety of
services to include legal assistance, wills and power of
attorney. All
services are available on an appointment basis.
Powers of Attorney and Notarizations are provided on a
walk-in basis.
Monday - Friday 7:30 AM – 4:30 PM
Additional MacDill AFB phone numbers can be found at
http://www.macdill.af.mil/library/factsheets/factsheet.asp?id=8175
IMPORTANT EMAIL ADDRESSES
Defense Finance and Accounting Service (DFAS) www.dfas.mil
Online account access- mypay.dfas.mil
Social Security www.ssa.gov
Medicare www.medicare.gov
TRICARE South www.humana-military.com
Retail/Mail Order Pharmacy www.express-scripts.com/TRICARE
TRICARE Contact Information www.tricare.mil/contactus
Veterans Administration www.va.gov
St. Pete VA Regional Office www.benefits.va.gov/stpetersburg
Florida Dept of Veterans Affairs www.floridavets.org
Army Retirement Services www.armyg1.army.mil/rso
Air Force Retirement Services www.retirees.af.mil
Navy Retired Services
www.public.navy.mil/bupers-npc/support/retired_activities
Defense Commissary Agency www.commissaries.com
Army & Air Force Exchange www.shopmyexchange.com
Navy Exchange www.mynavyexchange.com
Marine Corps Exchange www.mymcx.com
Arlington
National Cemetery
www.arlingtoncemetery.org
Federal Long Term Health Insurance www.opm.gov/insure/ltc
Navy Lodge Reservation Service www.navy-lodge.com
Armed Forces Recreation Centers www.armymwr.com
TRICARE
TRICARE is the DOD health care program for active duty
dependents and retirees who
are not under MEDICARE. The TRICARE Management Activity
(TMA), under the
authority of the Assistant Secretary of Defense (Health
Affairs), manages the program.
TRICARE has three options from which to choose – “PRIME,”
“STANDARD,” or
“EXTRA.” Contact the TRICARE Service
Center @ 1-800-444-5445
if you have any
questions.
TRICARE PRIME: TRICARE Prime is a health maintenance
organization (HMO)-
style plan available to active duty personnel, retirees from
the Active Component, retirees
from the Reserve Component age 60 or older, and their
eligible family members. Under
TRICARE Prime, beneficiaries must choose a primary care
physician and obtain referrals
and authorizations for specialty care. There is an annual
enrollment fee for TRICARE
Prime for military retirees and their family members
($260/individual, $520/family), and
retiree beneficiaries are responsible for small co-pay for
each visit. There is no
enrollment fee for active duty military and their family.
TRICARE STANDARD: TRICARE Standard provides a similar
benefit to the original
CHAMPUS program and is available to active duty personnel,
retirees from the Active
Component, retirees from the Reserve Component age 60 or
older, and their eligible
family members. Under TRICARE Standard, beneficiaries can
use any civilian health
care provider that is payable under TRICARE regulations.
There is no enrollment fee for
TRICARE Standard, but the beneficiary is responsible for
payment of an annual
deductible ($150 individual/$300 family), 25% of allowed
charges, and may be
responsible for certain other out-of-pocket expenses.
TRICARE EXTRA: TRICARE Standard beneficiaries can elect to
use the TRICARE
Extra option by using a civilian health care provider from
within the regional contractor's
provider network. In this way, TRICARE Extra represents a
preferred provider
organization (PPO). When using TRICARE Extra, the
beneficiary's annual deductible
($150 individual/$300 family) is the STANDARD deductible,
but the coinsurance
amount is reduced to 20%. There is no additional fee for use
of the TRICARE Extra
benefit.
TRICARE FOR LIFE: Effective October 1, 2001, DoD implemented
the Tricare For
Life (TFL) program for all Medicare eligible retirees and
their qualifying family
members and survivors as the secondary Supplement coverage.
The program pays for
any Medicare deducible or co-payment. There is no enrollment
necessary for TFL. To be
eligible, you must be TRICARE and Medicare Eligible and have
purchased Medicare
Part B coverage, receiving retired pay or veterans
disability compensation, and also
registered in DEERS (800-538-9552). In some instances TFL is
the primary payer when
the services are normally a TRICARE benefit but not covered
by Medicare. TFL does
not pay patient liability for services that are not a
TRICARE benefit even though
Medicare may pay them, such as chiropractic benefits. The
policy limitations applying to
TRICARE also apply to TFL and must therefore be deemed
medically necessary and
require skilled care. Custodial care therefore is not
covered.
TRICARE PHARMACY PROGRAM: TRICARE provides a world-class
pharmacy
benefit to all eligible uniformed service members, retirees,
and family members,
including beneficiaries age 65 and older. Pharmacy Coverage
is the same regardless your
beneficiary category or which health plan option you are
using. TRICARE offers four
convenient ways to fill your prescriptions: Military
Treatment Facility, Retail Network
Pharmacy, Pharmacy Home Delivery, and Non-network Pharmacy.
Express Scripts is the TRICARE contractor providing home
delivery and retail network
pharmacy services. They can be reached at
DoD.customer.relations@express-scripts.com
or 877-363-1303.
Suggestions for improvement will be greatly appreciated. Please contact Mike
Borders, MBor57@aol.com and at telephone
863-402-8292.