bfzw9578-rox62d4gj8v6e3p2

Florida Monthly Tax Tip-Florida Sales Tax Audit? – How To Prepare

Mon, 04 Aug 2025 15:15:23 GMT

What To Expect in a

Florida Sales Tax Audit?

Nydia Menendez, The Florida Tax Girl - July 31, 2025

Hello again, my fellow Florida tax aficionado! ��

Thanks for sticking with me through the twists and turns of Florida sales tax. In this series of Tax Tips, we’re diving into one of the more nerve-racking parts of business life: the dreaded sales tax audit �� — but don’t worry, I’ve got your back!

Audits often start with a friendly enough phone call from the Department of Revenue (DOR), though let’s be honest — in today’s world of robocalls and voicemail black holes, that first call might not always land where it should. ��‍♀️

What matters most is the official start of the audit: the Notice of Intent to Audit (Form DR-840) . Once you receive this, you have a 60-day Preparation Period — during which the DOR is legally prohibited from beginning the audit unless you waive that right.

⚠️ Pro Tip: We strongly (and I mean STRONGLY) recommend you do NOT waive this period. Use it wisely — use it to PREPARE! ✅

�� Let’s Break It Down –
4 Key Steps to Prepare

1️⃣ Step 1: Be Selective & Strategic With Documentation

Just because the auditor asks for everything doesn’t mean everything is necessary. The auditor may request the “negative universe”, but not all the documentation requested is relevant. Think before you send — scope matters! ��

2️⃣ Step 2: Review Before You Submit

Would that spreadsheet or bank statement confuse someone not in your business? For example, if you provide bank statements, an auditor might assume that all the deposits are sales revenue. But maybe it’s not — could those deposits be refunds, transfers from other company accounts, loans. Context is key! ��

3️⃣ Step 3: Reconcile With Federal Returns

The DOR has access to data like your 1099-Ks and federal tax returns. The auditor will use these reports to verify sales and expense. Make sure your sales figures match across reports — mismatches can raise red flags ��. For example:

Gross receipts on your federal taxreturn should match gross sales reported to the Department.
Rent expense on the federal tax return should line up with rent ledgers and invoices (which have sales tax itemized!).

If they don’t match, guess what? The DOR will assume you owe the tax and shift the burden for you to prove (and I mean prove) otherwise. Ouch! ��

4️⃣ Step 4: Keep Your Books Audit-Ready Year-Round

Good audits start with good bookkeeping. Don’t wait until you’re under review to clean up the books. Seemingly minor decisions (like invoice dates or purchasers’ names), may not matter for federal tax purposes, but could have major consequences in a sales tax audit. Details matter! ��

�� Got an Audit Notice?

Don’t panic. Just reach out! We can help you prepare, organize, and respond — so you don’t overpay or get blindsided. A little guidance now can save a lot of time (and money) later. ��⏳

Warmly,
Nydia – The Florida Tax Girl
Saving Floridians from sales tax confusion, one Tax Tip at a time. ��

Florida Monthly Tax Tip-What To Expect in a Florida Sales Tax Audit?

Mon, 04 Aug 2025 15:10:45 GMT

What To Expect in a

Florida Sales Tax Audit?

Nydia Menendez, The Florida Tax Girl - July 17, 2025

The prior Tax Tip planted the seed that we are going to talk Florida Sales Tax audits for a while! Not a pleasant topic, so thank you for sticking with me!

Have you received a Notice of Intent to Audit or ever been audited by the Florida Department of Revenue (the “FDOR”)? If so, you know audits can be daunting. Audits are time-consuming, detailed, and designed to uncover issues—which could end up costing your business significantly.

Here’s a quick look at the four (4) main areas the FDOR typically reviews during a sales and use tax audit:

1️⃣ Sales

Have all sales been reported correctly, and were the exempt sales properly documented?

2️⃣ Fixed Assets

Was sales tax paid on all taxable fixed asset purchases?

3️⃣ Consumables

Are you paying sales tax on everyday operational purchases (like office supplies, taxable services, automobile expense, repairs to tangible personal property, etc.)?

4️⃣ Commercial Rents

Tax on commercial rents will become extinct effective October 1, 2025. However, audits do go back in time, so it is still an issue that will come up in an audit, and it manages to catch many by surprise, as Florida is the only U.S. state that imposes sales tax on commercial rent—and, to make things trickier, in recent years commercial rents have been taxed at different rates than other taxable transactions.

�� A Few Key Rules to Remember:

�� Documentation Requests:

The Department often asks for more information than what I think is reasonably necessary for a compliance audit.

⚖️ Presumption of Taxability:

If there’s any uncertainty about a transaction, the FDOR typically assumes it’s taxable—unless you can prove otherwise.

⏳ Deadlines and Procedures Matter:

There are strict deadlines and procedures that must be followed during an audit. Missing one could mean losing important rights or incurring extra costs.

�� Have you received an audit notice?

If so, don’t wait! Reach out to us right away. We can help you prepare, respond, and reduce the risk of overpaying.

A quick review now could help avoid a long and expensive audit or appeal later

 Stay tuned for the next Tax Tip in which I will talk about what to expect in an audit.

I love to talk tax—so you don’t have to. ��

Warmly,
Nydia – The Florida Tax Girl
�� Saving Floridians from sales tax confusion, one emoji-filled tip at a time.

Florida Monthly Tax Tip-Why Your Business Got Picked for a Florida Sales Tax Audit

Mon, 04 Aug 2025 15:01:18 GMT

��️ Why Your Business Got Picked for a Florida Sales Tax Audit

Nydia Menendez, The Florida Tax Girl - July 03, 2025

Thank you for sticking with me as we navigate the twists and turns of the Florida tax maze! �� In this next round of Tax Tips , we’re taking on a topic that no one wants to talk about—but everyone needs to know about: Florida sales tax audits . ��

Let’s start with the burning question:
“Why did my business get picked?!”
Is it random? A grudge? A cosmic joke? ��

Well… it’s a little mysterious—but after more than 30 years in the trenches, here’s what I’ve found are the most common reasons businesses get selected:

�� Common Audit Triggers

�� Random selection – Yep, sometimes you’re just the lucky winner �� of the Department’s routine audit sweep.

�� Late or missing filings , or inconsistent reporting ��—think of these like big, blinking audit beacons.

�� Previous audits that didn’t go so well ��—the Department remembers.

�� Industry-wide trends —some sectors are just audit magnets.

�� Third-party data reports like 1099-Ks �� that don’t quite match your reported numbers.

�� Customer complaints or whistleblowers —yikes. Sometimes people do snitch.

�� Discrepancies between your sales tax and your financials —bank statements, federal returns, credit card data, etc. ��

�� Large cash transactions or lots of tax-exempt sales —cue the magnifying glass. ��

Failing to report Use Tax is a red flag during FDOR audits, which can result in a significant tax liability. Let us know if you'd like help reviewing your online sales exposure, AND stay tuned for the next Tax Tip.

�� Have you received an audit notice?

Don’t lose sleep or sanity—reach out now. We’ll help you prepare, respond, and defend your business like the tax warriors

we are. ��️

 Stay tuned for the next Tax Tip in which I will talk about what to expect in an audit.

I love to talk tax—so you don’t have to. ��

Warmly,
Nydia – The Florida Tax Girl
�� Saving Floridians from sales tax confusion, one emoji-filled tip at a time.

Florida Monthly Tax Tip-Did You Pay Use Tax on Out-of-State Purchases?

Mon, 04 Aug 2025 14:57:41 GMT

Understanding Admissions

Nydia Menendez, The Florida Tax Girl - June 19, 2025

We hope your month is off to a great start. The prior Tax Tip discussed on-line sales. Today, let’s shed some light on a frequently misunderstood obligation — Florida Use Tax — on purchases.

Use tax is a complimentary tax to the sales tax. That is, use tax is due when a Florida business or individual purchases taxable goods without paying sales tax at the time of purchase, usually from out-of-state vendors. This includes everything!

How is “everything” defined? “Everything” means everything, including electronics, furniture, jewelry, motor vehicles, aircrafts, vessels, etc. The tax applies as long as the goods come into the State, even if only for a brief period.

Here’s what you need to know:

1. ��️ When It Applies:

If you bought something and weren’t charged Florida sales tax , you're likely responsible for self-assessing and remitting the Use Tax.

2. �� Rate:

The Use Tax rate is the same as your local sales tax rate , including any county surtaxes.

3. �� Common Examples:

Buying items from Amazon or other sites that didn’t collect tax
Picking up goods while traveling and bringing them into Florida

4. �� Reporting It:

You can report use tax on your regular Florida sales and use tax return (DR-15), or separately using form DR-15MO if you’re not a registered business.

Failing to report Use Tax is a red flag during FDOR audits which can result in a significant tax liability. Let us know if you'd like help with a Use Tax compliance review.

Until next time — stay sharp, stay compliant, and make sure that if no sales tax is paid at the time of purchase, the use tax due is reported and remitted.

I love to talk tax!
Nydia, The Florida Tax Girl
(Saving Floridians from sales tax confusion, one tip at a time.)

Florida Monthly Tax Tip- Navigating Florida Sales Tax in the Digital Age

Mon, 04 Aug 2025 14:53:27 GMT

Understanding Admissions

Nydia Menendez, The Florida Tax Girl - June 05, 2025

Hey there, fellow tax enthusiasts! I hope you’re doing well and continuing to grow your business.

In this Florida Tax Tip, I’d like to spotlight an increasingly important topic: Sales Tax and Online Transactions .

Florida, like many other states, has adapted its tax laws to account for the rise in e-commerce. If you sell products online—whether through your own website or third-party platforms like Amazon or Etsy—you may be required to charge, collect and remit Florida sales tax.

But it is not so simple! Gone are the days when the “physical presence” standard could be used to determine nexus to establish the seller’s reporting obligation in a state.

Let’s unpack some essentials:

1. �� Economic Nexus Threshold:

Since July 1, 2021, remote sellers who make over $100,000 in sales to Florida customers annually must register to collect and remit sales tax—even if they have no physical presence in the state.

2. �� Marketplace Facilitators:

In most cases, the tax is due at the time of the transaction, on an accrual basis. However, for events at certain facilities, the tax is due on the first day of the month following the event.

3. �� Taxable vs. Nontaxable Goods:

Most tangible products are taxable, but digital goods and services may or may not be, depending on specific criteria.+

4. �� Documentation and Recordkeeping:

You should retain all invoices and proof of tax collection for audit protection, especially for out-of-state transactions.

Failing to report Use Tax is a red flag during FDOR audits which can result in a significant tax liability. Let us know if you'd like help reviewing your online sales exposure, AND stay tuned for the next Tax Tip, which discusses the USE tax obligations of the in-state purchaser.

Until next time — stay tax sharp, stay compliant, and keep those online sales tax-compliant!

Nydia, The Florida Tax Girl
(Saving Floridians from sales tax confusion, Tip at a time.)

Florida Monthly Tax Tip- Understanding Admissions

Thu, 23 May 2024 18:21:10 GMT

Understanding Admissions

Nydia Menendez, The Florida Tax Girl - May 13, 2024

As part of my ongoing commitment to keeping you informed about Florida tax matters, I wanted to delve into the intricate realm of Florida Sales Tax, specifically focusing on "admissions."

Now, before you start thinking about confessions and such, let's clarify that we're discussing admissions in the context of paying to access certain venues or activities. According to Florida law, sales tax is generally applicable to the net sum of money charged for admitting individuals to places of amusement, sports, or recreation. This includes a wide array of activities, from theaters and shows to exhibitions, games, and even sightseeing rides utilizing various modes of transportation.

However, as with most tax matters, the devil lies in the details. Let's explore a few key points together:

1. Charging the Tax:

Sellers must prominently display admission prices or ensure that ticket prices accurately reflect the sales tax. So, next time you're at the movies, take a moment to check out those details.

2. Tax Due Date:

In most cases, the tax is due at the time of the transaction. However, for events at certain facilities, the tax is due on the first day of the month following the event.

3. Exemptions and Nuances:

While there's no resale exemption for admissions, there are numerous exemptions, such as those for nonprofit organizations, school events, agricultural fairs, and more. It's crucial to note that exemptions have strict qualifiers.

New Paragraph

Interestingly, federal law prohibits the taxation of individuals traveling in air commerce, which includes certain sightseeing rides like air balloons or helicopter flights. Hence, Florida tax cannot be imposed to charges on admissions activities in federal air space.

Understanding these nuances is vital, as they can significantly impact tax assessments for both individuals and businesses.

New Paragraph

Florida Monthly Tax Tip: A Glimpse into Multi-State Income Taxation

Thu, 23 May 2024 18:03:02 GMT

A Glimpse into Multi-State Income Taxation

Nydia Menendez, The Florida Tax Girl - Apr 22, 2024

Today, let's embark on another adventure as we unravel the labyrinth of state income tax when doing business in more than one state.
Unlike sales tax, where the regulatory dance floor has been guided by US Supreme Court Rulings, Congress decided to play DJ in 1959 with Public Law 86-272, bringing a bit of rhythm to the taxation of income in the multi-state chaos. This law waltzes in, specifically guarding out-of-state businesses, but there's a catch—it's a dance exclusively for those twirling in the realm of soliciting sales of tangible personal property.

So, what are the three main moves in this Public Law 86-272 dance of protection?

1. The Type of Tax:

It's a dance floor for income taxes only. Corporate Income Tax or Franchise Tax get the spotlight, while net worth or gross receipts taxes take a backseat. Sales and use taxes? They're off enjoying a different party.

2. The Type of Activity:

This dance is for those skilled in the art of solicitation. States watch the dance floor closely, defining solicitation with a narrow and strict lens.

3. The Type of Product:

The protection is extended only to the sale of tangible personal property. Sorry services, you have to find another dance partner.

But wait, there's more to this tax tale!
In the grand scheme of multi-state taxation, income gets apportioned to specific states, and each state has its own unique dance steps. In Florida, it's what I fondly call a "vanilla apportionment formula" featuring property, payroll, and sales. Vanilla, but with a zesty twist!

Now, here's where the plot thickens. Recent developments, inspired perhaps by the Wayfair case, have seen the Florida Department of Revenue adopting a market-based sourcing stance. In the Target Enterprise, Inc. case, the Department tried to source receipts based on Target's store square footage. The court, however, did a quick two-step, rejecting this notion and emphasizing the importance of focusing on TEI’s activities, not Target's real estate prowess.

As we navigate these intricacies, especially in our post-COVID remote work era, it's crucial to stay in the loop. These nuances translate into significant dollars, and we're here to help you waltz through them seamlessly.

Looking forward to the tax tango!
Nydia - The Florida Tax Girl

Florida Tax Tip of the Month: Demystifying Sales Tax Nexus – What You Need to Know!

Thu, 23 May 2024 17:29:10 GMT

Demystifying Sales Tax Nexus – What You Need to Know!

Nydia Menendez, The Florida Tax Girl - Feb 5, 2024

In today's tax tip, I'm diving into the intriguing world of sales tax nexus. Buckle up, because we're about to embark on a journey that's as thrilling as it is informative.

So, what on earth is this "nexus" thing, and why should you care? Well, my friends, it's the magical connection that determines whether out-of-state dealers fall under the jurisdiction of another state. Picture it as the handshake between different states in the grand dance of taxes.

Let's break it down:

1. The State A to State B Connection:

Imagine a dealer in sunny State A selling their wares to eager customers in the not so sunny State B. Now, State B wants its slice of the pie in the form of sales tax. Fair enough, right? But here's where it gets interesting. While State B expects its residents to self-report and pay the use tax (basically, the sales tax's buddy), it's far more efficient for the states if the dealers are obligated to report and remit the sales tax. Simplicity wins the day!

2. The Waiting Game and the Supreme Twist:

Now, you'd think that given the complexity of inter-state commerce, Congress would step in with some federal legislation. But nope, they didn't. In 1967, the U.S. Supreme Court, in the National Bellas Hess, Inc. v. Illinois Department of Revenue case, decided that having property or payroll in a state was the ticket to being taxed by that state. Fast forward to 1992 and the Quill Corp. v. North Dakota case, where the Court threw the nexus requirement squarely into the Commerce Clause basket. Physical presence became the name of the game. If you had property or payroll in any state, bingo – you had nexus.

3. The Unexpected Plot Twist:

Because inter-state commerce is under the purview of Congress, I was convinced that the high Court was sending a secret message to Congress to sort this out. Turns out, I was wrong! For more than 25 years, Quill was the law of the land (mostly), which was not a bad deal for taxpayers!

4. Enter Economic Nexus and the Wayfair Saga:

The states weren't having it, though. They passed laws challenging the physical presence rule with concepts like affiliate nexus, click-through nexus, and economic nexus. In 2018, the Supreme Court, in South Dakota vs. Wayfair, gave the green light to the states, saying they could impose economic nexus thresholds on top of the physical presence rule. Now states can impose a filing obligation on businesses with either physical presence or significant sales into their territory.

5. Florida Joins the Party:

Although Wayfair was decided in 2018, Florida, albeit tardy to join, wasn't one to be left behind. Starting July 1, 2021, Florida's economic nexus law requires remote sellers and marketplace facilitators to register when they hit a certain threshold. In Florida, "substantial" means more than $100,000 in sales or 200 or more retail transactions.

The economic nexus legislation is expected to bring a dramatic increase of revenue into Florida. So much so that these newly-found revenues have already been pledged to fund the State’s unemployment compensation trust fund; and once that is fully replenished, the tax rate on commercial rents (another Florida distinction) will be reduced. Big changes are coming, folks!

6. The Bottom Line: Here's the scoop:

it's not just a sales tax; it's always been a sales AND USE tax. If the seller doesn't collect the sales tax, the buyer must self-accrue, report, and remit the use tax. And trust me, the tax on purchases (or “consumables” – in audit parlance) is a big one in sales and use tax audits. Most folks are unaware of this, so it might be a great conversation starter with your clients.

Unraveling the Florida tax maze to help taxpayers comply with complex laws is my mission! ��

Let's keep the tax talk exciting and enlightening!
Tax hugs, Nydia - The Florida Tax Girl

Florida Tax Tip of the Month: Separately Stated and Itemized Charges

Thu, 23 May 2024 16:58:20 GMT

Separately Stated and Itemized Charges

Nydia Menendez, The Florida Tax Girl - Dec 4, 2023

Today, I've got a juicy tidbit. It's all about the art of "separately stating and itemizing charges" on sales invoices. Trust me, mastering this can be the key to avoiding the surprise of additional taxes!

So, what exactly should you be "separately stating and itemizing"?

Just about everything! The requirement to separately state and itemize is repeatedly found in Chapter 212, Florida Statutes, and Chapter 12A-1, Florida Administrative Code.

Remember the Tax Tip about the Florida Department of Revenue’s drop of oil concept in service transactions? Ah, good times. Just in case you missed it, I mentioned one example where in order for optional services (like transportation/delivery charges) to be exempt in a transaction involving tangible personal property, you had to play by the rules. Well, some of the rules I was referring to included separately stating and itemizing those "optional" charges from the cost of the main tangible goodies.

This is what section 212.05, FS, says “… the consideration paid must be separately identified and stated with respect to the taxable and exempt portions of the transaction or the entire transaction shall be presumed taxable. The burden shall be on the seller of the service or the purchaser of the service, whichever applicable, to overcome this presumption by providing documentary evidence as to which portion of the transaction is exempt from tax.”

Did you notice who bears the burden of overcoming the presumption that all the charges on an invoice (or in a transaction) are taxable?

Cleverly, it could be the seller or the purchaser! And hold on, it doesn't stop there. Even the tax itself has to be separately stated! Section 212.07, FS, expressly states “[a] dealer shall, as far as practicable, add the amount of the tax imposed under this chapter to the sale price, and the amount of the tax shall be separately stated as Florida tax on any charge ticket, sales slip, invoice, or other tangible evidence of sale.” Failure to comply could cause personal liability to the seller for the tax. Talk about motivation!

But hey, let's get real. Some situations make it tricky (or "not practicable," as the statute puts it) to separately state and itemize charges.

Think parking, car washes, movies, and even drinks at a bar! Let’s do a reality check here - do you recall ever receiving an invoice for these transactions that separately states and itemizes the sales tax? Most likely not!

Sometimes, the sales price already includes the sales tax, and the seller backs out the sales tax for remittance to the State. In such cases, even when the seller/dealer remits the sales tax to the State, the consumer must still have “notice” that the sales tax is being charged – that is at the crux of separately stating and itemizing. One approved way of giving notice that the tax is being charged (when an invoice is not practicable) is for the dealer to display signage that states “Sales Tax is included” or something to that effect.

As a sales tax audit defense attorney, I've seen it all. When my clients have expenses without invoices showing tax payment or when it's impracticable to provide a detailed invoice, we whip out our secret weapons, which could include photos of those magical signs!

Remember, devilish details need love too! As trusty taxpayer advisors, it's our mission to master these details, and that's where the real magic happens!

Cheerfully yours,
Nydia-The Florida Tax Girl ��

Florida Tax Tip of the Month: Unraveling Florida's Food Tax Mysteries

Wed, 01 May 2024 15:58:10 GMT

Unraveling Florida's Food Tax Mysteries

��

Nydia Menendez, The Florida Tax Girl - Nov 1, 2023

So, let's talk food, which in the State tax world is a delightful, sometimes puzzling world of edible wonders. ��️ I bet you didn't know that our trips to the grocery store can become a suspense-filled sales tax quiz! ��

Alright, buckle up, here are some of my all-time favorite food puzzlers:

1. Liquid Dilemma:

Natural fruit juice with 100% fruit goodness is exempt, but the moment it wears the labels "drink," "ade," "beverage," "cocktail," or "flavored," it becomes taxable.

2. ��Water Works:

Plain, drinking water flows freely with an exemption. But once it's carbonated or flavored, prepare to see some tax action! And if it's frozen, say hello to a taxable treat! ❄️

3. Bakery Bonanza:

Ah, this one's a real treat! �� When cookies, muffins, bagels and other like food items are sold by bakeries, pastry shops, or similar establishments (the “Seller”) that does not have an eating facility, the goodies are exempt. But if the Seller has an eating facility, then the baked goods are taxable, unless the products are sold for consumption off premises. To that end, here’s what the Department’s Form DR-46NT actually says “Bakery products sold in quantities of five (5) or fewer are presumed to be TAXABLE.” I surmise that the thinking here is that no one could possibly buy five of anything for immediate consumption. (Thought to self: Oh my! I did not know that!)

4. Snacks or Candy Conundrum:

Is it junk or not? Personally, I consider both to be junk food, but it seems that the Department may consider snacks to be healthier (dare I say); and candy, well, not so much. Here's what the DR-46NT spills: snacks like chips, nuts, pretzels, and even chocolate-coated goodies are tax-exempt! �� On the flip side, anything regarded and advertised as candy, yup, you guessed it, taxable! ��

After 31 years in the state tax world, I still have trouble accepting that five or fewer (or six or more) creates a presumption that the baked goods are not for immediate consumption. With the way I eat cookies, clearly, I was not part of the pilot program! LOL! �� Also, since pork rinds are expressly listed as snacks, I withdraw my conclusion that snacks might have been considered to be healthier. Mind-boggling, right?

All jokes aside, these nuances can add up to huge assessments.

So, as promised, here's the Florida Tax Tip of the Month: While we've covered the main rules (12A-1.011 and 12A-1.0115, FAC) and some of the DR-46NT language, there's a whole buffet of other details regarding food sales! �� So, when you're diving into this realm, keep those Rules handy for a smooth tax-sailing experience!

And here’s a tax fun-filled challenge: The next time you embark on a supermarket adventure, take that DR-46NT as your trusty food tax map. ��️ Were there any surprises?

Unraveling the Florida tax maze to help taxpayers comply with complex laws is my mission! ��

New Paragraph

Florida Tax Tip of the Month: Florida Sales Tax Applies To The Sale of Tangible Personal Property – Not Really!

Wed, 01 May 2024 15:38:11 GMT

Florida Sales Tax Applies To The Sale of Tangible Personal Property – Not Really!

Nydia Menendez, The Florida Tax Girl - Oct 2, 2023

In general, Florida sales tax applies to the sale of tangible personal property (see s. 212.05, FS) and specifically enumerated services. But here's where things get interesting: the Florida Department of Revenue’s "drop of oil" concept! Picture this - if a service transaction involves even the tiniest tangible personal property element (yes, think a drop of oil), the entire service becomes taxable. Crazy, right?

Take a simple tire rotation and balance, for instance:

Most of the work is labor but adding that little lead weight for balance means the entire transaction becomes taxable – all because of that one tiny piece of lead!

Surprising examples of tangible personal property services that become taxable:

Now, let me share some surprising examples of other services that become taxable simply because there is some (however tiny) tangible personal property as part of the service: repairs (to cars, computers, furniture), photography, designer services and seamstress services (yup, even thread counts and tangible personal property!)

Exemptions:

On the flip side, there are services that include tangible personal property that are exempt. For example, the labor for repairs to real property is exempt. (That’s right! One more nuance, labor is exempt when the repairs are to real property! Stay tuned for a Florida Tax Tip that will unravel this concept!) Other services, like legal, accounting, financial planning, surveyors, and salon services may include tangible personal property but manage to dodge the sales tax bullet.

"Optional":

Then there are “optional” ancillary services, such as transportation and delivery, which may not be included as part of the taxable sale, BUT ONLY IF certain rules are followed. (I promise that this, too, will be covered in another Florida Tax Tip.)

Each of the examples listed above are weighed with fine distinctions and peculiarities, so caution is warranted when reviewing and analyzing such transactions.

Together, we'll chip away at the confusion, making sure your clients are Florida tax compliant and well-prepared for whatever the tax landscape throws their way!

Cheers,

Nydia - The Florida Tax Girl

P.S. Keep your curiosity high and your tax questions ready; we're on a mission to untangle the Florida sales tax mysteries!

¿Qué es la Ley de Transparencia Empresarial?

Tue, 02 Jan 2024 17:18:56 GMT

La Ley de Transparencia Empresarial (la "CTA" o la "Ley") entrará en vigor en unas pocas semanas, el 1 de enero de 2024. Sin embargo, la Ley impondrá nuevos requisitos de información a aproximadamente 32 millones de pequeñas empresas, con importantes sanciones civiles y penales. Por este motivo, es posible que sea necesario actuar de inmediato antes de finales de 2023 para reducir o retrasar el impacto de la LTC en caso de que le afecte.

¿Qué es la Ley de Transparencia Empresarial?

La LTC exigirá a determinadas entidades (denominadas "empresas declarantes") que faciliten información sobre las propias empresas, sus "beneficiarios efectivos" y los solicitantes de la empresa (las personas que firmaron los documentos de constitución y formación para crear la entidad). A efectos de la LTC, los beneficiarios efectivos no son sólo las personas que muchos considerarían propietarias de una entidad. Por el contrario, un beneficiario efectivo también incluye a cualquier persona física que, directa o indirectamente, (i) ejerza un "control sustancial" sobre una sociedad declarante o (ii) posea o controle al menos el 25 por ciento de las participaciones de propiedad de dicha sociedad declarante.

Hay muchas frases clave en esta definición, como "directa o indirectamente", "control sustancial", "posee o controla" y "participaciones". Cada uno de estos términos se define en la norma final de la FinCEN, y en general da lugar a una serie de normas muy amplias destinadas a incluir al mayor número posible de personas que podrían influir potencialmente en el funcionamiento de la entidad.

¿Cuándo deben informar las empresas?

Las empresas que existían a 31 de diciembre de 2023 deberán presentar el informe inicial a más tardar el 1 de enero de 2025. Sin embargo, las entidades constituidas a partir del 1 de enero de 2024 deberán presentar el informe a más tardar 30 días después de su constitución. Dado que 30 días es tan poco tiempo para recopilar toda la información requerida, debería considerarse la posibilidad de constituir las entidades previstas para principios de 2024 no más tarde del 31 de diciembre de 2023, con el fin de ampliar el plazo de presentación de informes.

¿Cómo se deben tramitar los informes?

Cada empresa declarante debe presentar su informe inicial en línea al FinCEN. El sistema de presentación segura (Beneficial Ownership Secure System o "BOSS") estará disponible a través de un portal de presentación en línea del FinCEN a partir del 1 de enero de 2024.

¿Qué información debe declararse?

El reporte inicial debe incluir información muy específica, como el nombre legal completo y cualquier nombre comercial de la empresa declarante, una dirección completa de la empresa declarante y el número de identificación fiscal de la empresa declarante. Cabe señalar que una dirección de apartado de correos o la dirección del abogado que constituyó la entidad no será una dirección aceptable. Además, el informe debe incluir información detallada sobre cada beneficiario efectivo y cada solicitante de la empresa: nombre legal completo, fecha de nacimiento, dirección residencial actual completa, un número de identificación único de determinados documentos oficiales de identificación gubernamental (por ejemplo, pasaporte válido o permiso de conducir expedido por el gobierno), y debe cargarse en el portal una copia del documento utilizado. Por último, la empresa declarante debe certificar que la información declarada es veraz, exacta y completa.

¿Existe alguna excepción?

Sí. Hay 23 excepciones a los requisitos de información de la LTC, pero las excepciones se aplican principalmente a las grandes empresas con más de 20 empleados e ingresos brutos superiores a 5 millones de dólares, organizaciones sin ánimo de lucro y empresas que ya están sujetas a normativas importantes. Por lo tanto, estos nuevos requisitos de la LTC están pensados para afectar principalmente a las pequeñas empresas como la suya.

¿Sólo hay que presentar una solicitud?

En realidad, no. ... Para las empresas declarantes creadas antes del 1 de enero de 2024, la declaración inicial debe presentarse a más tardar el 1 de enero de 2025. Y, para las empresas creadas a partir del 1 de enero de 2024, la presentación inicial deberá efectuarse a más tardar 30 días después de la constitución de la empresa.

Además, cualquier cambio o corrección de la información requerirá que la información comunicada se actualice en un plazo de 30 días a partir de cualquier cambio. Por ejemplo, si una sociedad declarante pertenece en su totalidad a A y A se traslada, la sociedad declarante deberá presentar un informe actualizado en un plazo de 30 días a partir del traslado de A. Si A contrae matrimonio (o se divorcia) y cambia de nombre, deberá presentar un informe actualizado en un plazo de 30 días a partir del cambio de nombre. Por lo tanto, además de la declaración inicial, también existe la obligación de actualizar, corregir y notificar cualquier cambio en la información declarada inicialmente. La obligación de declarar es continua.

¿Qué ocurre si no se presentan los informes?

Las sanciones por no comunicar a la FinCEN información completa o actualizada sobre la titularidad real o por facilitar o intentar facilitar deliberadamente información falsa o fraudulenta sobre la titularidad real son considerables. Existen sanciones civiles y penales por infracciones de hasta 500 dólares al día, multas de hasta 10.000 dólares y hasta 2 años de prisión.

¿Qué hay que hacer ahora?

Hay medidas que puede tomar ahora para minimizar o retrasar cualquier posible requisito de presentación de CTA.

En primer lugar, si posee participaciones en entidades antiguas que siguen existiendo pero que ya no sirven para nada, debería considerar seriamente la posibilidad de disolver dichas entidades antes del 31 de diciembre de 2023 y disolverlas formalmente. Estaremos encantados de ayudarle en esta tarea y de analizar con usted los pros y los contras de disolver una entidad concreta. Para las empresas que se disuelvan formalmente el 31 de diciembre de 2023 o antes, no habrá requisitos de información en virtud de la LTC. (NOTA: Una sociedad formalmente disuelta es diferente de una sociedad inactiva).

En segundo lugar, si está considerando crear una nueva entidad y puede hacerlo razonablemente, debería considerar la creación de dicha entidad antes del 31 de diciembre de 2023. Este paso le dará tiempo adicional para completar la diligencia debida necesaria para el cumplimiento del informe de CTA, ya que el informe inicial no debería presentarse hasta el 1 de enero de 2025.

Además, puede tomar medidas para asegurarse de que, en la medida en que usted pueda ser un beneficiario efectivo, o una persona responsable de garantizar que una empresa declarante cumpla con la LTC, disponga de toda la información necesaria para el cumplimiento oportuno.

¿Cómo podemos ayudarle?

Estamos preparados para ayudarle a comprender sus obligaciones en virtud de la LTC y a determinar quién puede ser un beneficiario efectivo. También nos comprometemos a seguir de cerca las actualizaciones de las normas de la LTC y a compartir lo que aprendamos con nuestros clientes y en nuestro sitio web.

Para saber si tiene la obligación de informar en virtud de la LTC, puede realizar el cuestionario de la LTC.

Sólo estamos trabajando en el cumplimiento de la CTA para los clientes que contratan formalmente a la empresa para hacerlo. Si desea contratarnos para trabajar con usted en cualquier asunto relacionado con el cumplimiento de las CTA, llame a nuestra oficina al (954) 963-7220 , o envíenos un correo electrónico a cta@menendezlawfirm.com .

What is the Corporate Transparency Act?

Tue, 19 Dec 2023 21:05:07 GMT

The Corporate Transparency Act (the “CTA” or the “Act”) becomes effective in just a few short weeks - on January 1, 2024. Yet, the Act will impose new reporting requirements on approximately 32 million small businesses, with significant civil and criminal penalties. For this reason, immediate action may be required before the end of 2023 to lessen or delay the impact of the CTA should it apply to you.

What is the Corporate Transparency Act?

The CTA will require certain entities (called “reporting companies”) to report information about the companies themselves, their “ beneficial owners ”, and company applicants (the persons who signed the incorporation and formation documents to create the entity). For purposes of the CTA, beneficial owners are not just the persons many would consider to be owners of an entity. Instead, a beneficial owner also includes any individual who, directly or indirectly, either (i) exercises “substantial control” over a reporting company or (ii) owns or controls at least 25 percent of the ownership interests of such reporting company.

There are a lot of key phrases in this definition, including “directly or indirectly,” “substantial control,” “owns or controls,” and “ownership interests.” Each of these terms is defined in the final FinCEN rule, and generally results in a very broad series of rules intended to include as many people as possible who could potentially influence the operation of the entity.

When Must Reporting Companies Report?

Companies that existed as of December 31, 2023, must file the initial report no later than January 1, 2025. However, entities formed on or after January 1, 2024, will be required to report no later than 30 days after the entity is formed. Because 30 days is such short time to gather all the required information, consideration should be given to forming entities otherwise planned for early 2024 no later than December 31, 2023, in order to extend the reporting deadline.

How Must The Reports Be Filed?

Each reporting company must file its initial report online with FinCEN. The secure filing system (the Beneficial Ownership Secure System or “BOSS”) will become available via a FinCEN online filing portal starting January 1, 2024.

What Information Must Be Reported?

The initial report must include very specific information, such as the full legal name and any trade or “doing business as name” for the reporting company, a complete street address of the reporting company, and the Taxpayer Identification Number for the reporting company. It is worth noting that a P.O. Box address or the address of the attorney who formed the entity will not be an acceptable address. In addition, the report must include detailed information for each beneficial owner and each company applicant : full legal name, date of birth, complete current residential address, a unique identifying number from certain official governmental identification documents (e.g., valid passport or government issued driver’s license), and a copy the document used must be uploaded to the portal. Lastly, the reporting company must certify that the information being reported is true, accurate and complete.

Are There Any Exceptions?

Yes! There are 23 exceptions to the reporting requirements of the CTA, but the exceptions apply mainly to large companies with more than 20 employees and gross receipts in excess of $5 million, non-profit organizations, and companies that are already subject to significant regulations. Hence, these new CTA requirements are intended to affect primarily small companies like yours.

Is There Only One Filing Required?

Not really! … For reporting companies in existence prior to January 1, 2024, an initial filing is required no later than January 1, 2025. And, for companies created on or after January 1, 2024, the initial filing is due no later than 30 days after the company’s formation.

Also, any change or correction of information will require that the information reported be updated within 30 days of any change. For instance, if a reporting company is wholly owned by A and A moves, then the reporting company must file an updated report within 30 days of A’s move. If A marries (or divorces) resulting in a name change, then an updated report must be filed within 30 days of the name change. Hence, in addition to the initial report, there is also an obligation to update, correct and report any changes to the information initially reported. The reporting obligation is continuous!

What happens if reports are not filed?

The penalties for failing to report complete or updated beneficial ownership information to FinCEN or willfully providing or attempting to provide false or fraudulent beneficial ownership information are substantial. There are civil and criminal penalties for violations of up to $500 per day, fines up to $10,000, and up to 2 years imprisonment.

What should you do now?

There are steps you can take now to minimize or delay any potential CTA filing requirements.

First, if you own interests in old entities that still are in existence but no longer serve a purpose, serious consideration should be given to unwinding those entities prior to December 31, 2023, and formally dissolving the entities. We would be happy to assist you with this and to discuss with you the pros and cons of unwinding any particular entity. For companies that are formally dissolved on or before December 31, 2023, there will be no reporting requirements for under the CTA. (NOTE: A formally dissolved company is different from an inactive company.)

Second, if you are considering creating a new entity and can reasonably do so, you should consider creating that entity prior to December 31, 2023. This step will allow you additional time to complete the necessary due diligence for CTA reporting compliance because the initial report would not be due until January 1, 2025.

In addition, you can take steps to ensure that to the extent that you may be a beneficial owner, or a person responsible for making sure a reporting company is in compliance with the CTA, you have all the information necessary for timely compliance.

How can we assist you?

We are prepared to assist you in understanding your obligations under the CTA and determining who may be a beneficial owner . We are also committed to continue tracking the updates to the CTA rules and sharing what we learn with our clients and on our website.

To find out if you have a CTA reporting obligation you can take the CTA Quiz.

We are only working on CTA compliance for clients who formally engage the firm to do so. If you would like to engage us to work with you on any CTA compliance issues, please call our office at (954) 963-7220 , or send us an e-mail at cta@menendezlawfirm.com .

Florida Tax Tip of the Month: The True Costs of Rents and Other Paid Uses of Real Property.

Tue, 31 Oct 2023 16:34:43 GMT

Cost of Rents and Other Paid Uses of Real Property.

Nydia Menendez, The Florida Tax Girl - Oct 31, 2023

The True Costs of Rents and Other Paid Uses of Real Property

As fellow comrades in the world of tax compliance, I’m about the launch of our monthly Florida Tax Tips.

Drumroll, please...

Did you know that Florida stands alone as the only state that imposes sales tax on commercial rents and other uses of real property? It's a sneaky surprise that catches both in-state and out-of-state taxpayers off guard. So, in the spirit of fending off unwanted surprises, let's dive into the unique aspects of sales tax when it comes to the taxation of commercial rents and other uses of real property in the sunshine State:

1. Familiar Faces, Taxable Spaces:

Brace yourself for this twist! Even when the parties involved are related, sales tax is imposed on presumed rent. Imagine this: Company A owns real estate, and guess who occupies it? Company B, which is owned by the same person(s) behind Company A. Now, here's the plot twist—any compensation paid by Company B for the property's operating expenses is presumed to be rent. This usually includes mortgage payments, possibly insurance and utilities. Other suspect expenses could be property taxes and common area maintenance. That's right, these types of payments if made “directly or indirectly” by Company B could be presumed to be rent, taxable rent!

2. Accrual vs. Cash:

Sales tax is usually due on an accrual basis. However, when it comes to commercial rent, the tax is due when payment is "received." It adds a cash basis flavor to the tax liability for commercial rents. Something to keep in mind!

3. Tax Rates and Roller Coasters:

The current state tax rate for commercial rent sits at 5.5%, not the standard 6%. But buckle up, my friend, because the Florida legislature loves tinkering with tax rates. They've promised reductions in the rate, supposedly once the unemployment compensation trust fund gets a boost through specific funding from sales tax legislation passed in 2021. Hold onto your hats for potential changes!

4. More Than Just Buildings:

Brace yourself for a wild ride through the world of Florida sales tax on commercial rents and other real property! Sales tax also applies to parking spaces, storage facilities, docks, signage, and even transient rentals like hotels, Airbnb, and residential leases for a term of six months or less. It's a tax party, and everyone's invited!

5. Audit Alert:

Since this is a revenue goldmine for Florida, sales tax compliance on commercial rents receives specific attention during audits. The Department will be eager to examine the lease, invoices, and confirmation that sales tax has been duly remitted. In fact, they'll even cross-reference their internal records to ensure the presumed landlord has paid the sales tax on the rents collected. If you're unable to demonstrate that sales tax was handled appropriately in your business operations, they will assess the USE tax as a separate exhibit in the audit report. Yikes!

These are just a few examples of the nuanced world of Florida sales tax. As you can see, these subtleties can lead to hefty assessments for unsuspecting taxpayers. Knowledge is power, my friend!

So, here's the Florida Tax Tip of the Month: Ensure your clients are paying sales tax at the appropriate rate on their commercial rents. It's a small step that can save them from big headaches down the road.

Wishing you s unny skies and stress-free tax seasons,
Nydia, The Florida Sales Tax Girl

Did You Know There May Be Unintended Consequences for Your Beneficiaries of Your Estate Plan?

Tue, 22 Aug 2023 17:47:00 GMT

Did You Know There May Be Unintended Consequences for Your Beneficiaries of Your Estate Plan?

Did you know Florida estate planning is not just about creating a last will and testament? It is also about considering the intricacies of asset management, preservation, and protection for your loved ones. In this article, our attorney, Nydia Menendez, explores this crucial aspect of estate planning that is often overlooked and sheds light on why wills alone may not adequately address these concerns. One of the many benefits of working with an experienced law firm like ours is learning how to consider these factors, which can lead to a more comprehensive and thoughtful estate plan for the benefit of you and your loved ones.

We begin by helping you understand the limits of a last will and testament. While wills serve as a common estate planning tool, they possess limitations that can have significant implications for your beneficiaries. Let us delve into a few of these aspects that go beyond simple distribution right here in our blog.

Asset Management During Incapacity. A will activates at death. For this reason, a key shortcoming of relying solely on a last will and testament is its lack of provision for managing your assets if you become incapacitated during your lifetime. What happens to your estate when you're unable to manage it yourself? This is not a question you want to leave to chance. Instead, you want to answer it early.

Tax Planning and Minimization. Taxes can substantially affect the value of the inheritance your beneficiaries receive. A will may not account for tax planning or minimization strategies that could ultimately benefit your loved ones.

Asset Protection for Beneficiaries. Ensuring that your beneficiaries' inheritance remains secure from creditors, divorces, or unforeseen challenges is a critical consideration. When you plan early with your experienced Florida estate planning attorney you can answer the question of: How can you safeguard the financial future of your beneficiaries?

Let's delve into some scenarios that illustrate the unintended consequences that can arise when relying solely on a last will and testament for estate planning, especially in Florida.

Remarriage's Impact on Inheritance. If your spouse remarries after your passing, their new marriage could potentially jeopardize your children's inheritance. Without proper planning, assets intended for your children might end up benefiting someone else.

Challenges for Minor Beneficiaries. In Florida, minors cannot own property valued over $15,000. This limitation could mean that substantial wealth left to minors could require court intervention. And even more tragically, at the age of 18, which is the age of “adulthood” any inheritance that is being safeguarded is distributed to the now “adult” beneficiary. Are your beneficiaries prepared for this?

Beneficiary Readiness and Vulnerabilities. Even if your beneficiaries are adults, are they ready to manage a substantial inheritance? Consider their financial responsibilities, potential creditor issues, divorces, addictions, and government benefit entitlements.

The Probate Predicament. The necessity of probate is a significant drawback of relying solely on a last will and testament. This court-administered process can be time-consuming, expensive, and subject to complications. Probate can lead to unintended delays and disputes that affect your beneficiaries.

Our attorney Nydia Menendez wants to share with you that there is indeed a more comprehensive and effective way to ensure your assets are distributed and managed in alignment with your intentions. By considering alternatives to a last will and testament, you can navigate the potential unintended consequences and complexities that arise.

Planning your estate goes beyond the basics of a last will and testament. It involves careful consideration of the future implications of asset distribution, management, and preservation. Understanding the unintended consequences that beneficiaries might face and addressing them through alternative strategies can result in a more robust estate plan. In Florida, as elsewhere, your assets deserve the thoughtful protection and management that only a comprehensive estate plan can provide. Your beneficiaries' futures will benefit from the care and foresight that only comprehensive estate planning can provide.

We know this article may raise more questions than it answers. And that is exactly what estate planning should do: create questions to allow you the opportunity to resolve in advance the many uncertainties that life can bring your way. At Menendez Law Firm, we understand that when you protect what matters most to you, you will experience the peace of mind that you deserve. When thinking of the future regarding your property, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menendez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us today!

Steps You Need to Take When an Aging Parent is Facing a Health Care Crisis

Mon, 26 Jun 2023 17:00:00 GMT

Is your aging parent facing a health care crisis? Has the news been a blow to you and your family?

At Menendez Law Firm, because we are a Florida law firm, and 1 in 5 Florida residents are over the age of 65, we frequently work with the adult children of aging parents. As a result, we are very aware of how devastating news like this can be to the entire family. The family concerns are many, ranging from treatment options to the ease and accessibility of these.

We know that if you have aging parents you need as much support as possible. We want to share six important questions for you and your aging parent to think about regarding the steps that need to be taken in moving forward.

1. What support does your aging parent need right now? Is help with food needed? Grocery shopping? Medication management? Transportation to doctor appointments and treatment options? Is there someone local who can assist your aging parent, or will you be able to help out?

2. Do you know the health care providers for your aging parent? Do the health care providers have your information? Can the health care providers reach out to you? Can you reach out to them? Do your parents’ health care providers have a health care proxy for your aging parents in their records?

3. Speaking of a health care proxy, does your parent have advanced health care directives, appointing a decision-maker, and alternates, for health care decisions? Do you know the decisions that your parent would want a health care proxy to make on his/her behalf? In our Florida law firm, we meet with many clients facing the same questions that you and your aging parent have.

4. Do you know if your parent has chosen or thought about a decision maker for financial decisions? Does your parent have a valid Florida Power of Attorney? Has your parent taken the proper steps to avoid a guardianship? Some of the duties that an agent under a Power of Attorney can handle can include, but not be limited to, paying bills, ensuring income is regularly deposited if your parent is retired, monitoring financial investments, and even applying for public benefits to help pay for care should the need arise.

5. Do you know if your aging parent has a proper and comprehensive Florida estate plan? If the answer is yes, is it up to date? Does the estate plan reflect your parent’s wishes, decisions, and legacy? Are all the assets taken into account, so as to avoid probate or guardianship?

6. Do you know if your aging parent ever made any long-term care plans? Can your parent live at home independently? Will your parent need a caregiver? How can your parent plan forward to afford the care he or she may need? Has his or her health care crisis changed this?

As experienced Florida estate planning attorneys we can work with you and your aging parent to determine not just what your parent wants to do at the time of his or her passing, but who your parent wants to give legal authority to make his or her decisions regarding health care, assets and other important matters, such as long-term care and Medicaid planning.

There is so much to address with an aging parent in light of a health care crisis. These could be difficult conversations, which could greatly benefit by having an experienced Florida estate planning attorney be part of the discussion. In our Florida estate planning office, we help clients navigate the complications of long-term care planning.

We know this article may raise more questions than it answers. In our law firm, we work to protect your peace of mind, no matter what you or your family members are facing. When thinking of the future, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menendez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us today !

Key Estate Planning Tips You Need When You Have a Health Care Crisis

Mon, 19 Jun 2023 17:22:32 GMT

Have you recently received serious news in regard to your health? Are you facing a devastating diagnosis that has the potential to impact your life as you go forward? Are you now concerned about everything from being able to make the decision of who will be able to help you as you face this health care challenge? to who should have legal authority to make decisions if you become incapacitated? to, ultimately, decide how to protect your legacy and who should inherit from you at your passing? We can help you!

We are a Florida estate planning firm. We know the important discussions that need to take place as soon as possible as you face a health care issue.

A common misconception about estate planning is that the focus should revolve around the distribution of the assets (or wealth) at death. While this is true, it is only one of the many factors that estate planning should consider. A key aspect of estate planning should be planning for the unexpected or the undesirable during your life – be it a health crisis or incapacity. And because we are all susceptible to health-related issues, this means that estate planning should be of concern to all, with increasing concern as we age.

From the perspective of a Florida estate planning law firm, planning for a health crisis or incapacity is a must. Here in the sunshine state, approximately 21% of Florida residents are over the age of 65. Also, statistics show that an estimated 70% of persons over the age of 65 will experience some form of incapacity before passing away. These numbers are sobering for us (as a Florida estate planning law firm) because it clearly highlights the reality that when we prepare an estate plan for our clients, planning for health-related issues and incapacity must be part of the plan, commonly referred to as “advance health care directives.” For more information about Health Care Directives, you can visit our Video Library .

Although less than half of all Americans today currently have an estate plan, we always advocate that having an estate plan should be a high priority for all adults.

The warm Florida year-round weather is an attractive lure for the many Floridians that are living a healthy, active, and successful life. This might explain why so many put off creating a Florida estate plan. However, when we speak to clients that have planned, they tell us that prior to engaging in the estate planning process, they had not realized the benefits of having a comprehensive Florida estate plan. Clients become keenly aware of what a well-designed comprehensive estate plan can do for them both now and in the future. Sadly, we have also seen the other side when clients come to us after a crisis without having planned ahead. In fact, when faced with a significant health care issue is when many adults start to question what the future of their lives will look like and the impact on their legacy.

If you are on the fence about whether estate planning is for you, here are some of the questions you should ask and answer, and properly document:

If I am unable to pay my bills on time, who will?
If I am incapacitated and cannot make my own healthcare decisions, who will?
Is it time for a Florida living will?
I have pets, who will care for them?
I still run my business, who will continue it when I am not here?
What will happen to my family when I am no longer here?
When I pass away, who should inherit from me?

At Menendez Law Firm, we can assist you in answering all the above questions, and so many more, including questions about caring for those you love, planning for your legacy, and providing for yourself. This can all be accomplished when you create a well drafted and comprehensive Florida estate plan, tailored to meet your needs and address the unique concerns of you and your family.

In addition, a comprehensive Florida estate plan will allow you to answer lifetime, health-related questions in advance. For example, what treatments do you want to receive? What treatments do you not want to receive?

The details of a well-crafted Florida estate plan are many. These could include, but not be limited to, choosing trusted decision makers to act for you in a crisis, or when you no longer have the capacity to make your own decisions. You can give legal authority through your estate planning tools, such as a valid Florida power of attorney, to those you trust as well as name backups in the event they are not able to act for you when needed.

Whether you are facing a health care crisis, or if you simply want to be proactive, we can show you how, with a qualified and experienced Florida estate planning attorney, your Florida estate plan can be used to protect what matters most to you. For example, what do you wish to see happen in your business? How do you want your minor children to be cared for? How will you pay for your care? And, if you are unable to act for yourself, who should make these decisions for you?

Addressing these issues is a critical part of what your legacy will be. We know that legacy embraces more than just the concept of who will inherit from you when you pass away. Planning in advance is your opportunity to establish your legacy. At Menendez Law firm, our experienced Florida estate planning attorneys can help you define what your legacy looks like and ensure you have a plan in place to reach it.

At Menendez Law Firm, we understand that when you protect what matters most to you, you will experience the peace of mind that you deserve. When thinking of the future regarding your property, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menendez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us today !

Why You Need a Florida Probate Attorney in Your Local Community to Help You

Sun, 21 May 2023 17:22:45 GMT

Did you know a Florida probate attorney is a lawyer who focuses her practice in the area of helping families deal with the affairs of a person that has passed away? Many people believe that having a Will is the best way to plan. However, the reality is that when a person passes away in Florida with a Will, his or her estate will, in almost all instances, go through the Florida judicial probate process. If the person does not have a Will, a Florida probate may still be needed.

A Florida probate attorney is hired to administer the estate of the decedent and works alongside the Personal Representative (who must be appointed by the court) and the probate court.

As part of this representation, the attorney will manage responsibilities that include, but are not limited to, the following:

Prepare court documents and pleadings,
Determine the legal beneficiaries and the legal creditors,
Marshall the assets of the decedent and prepare an inventory,
Gather appraisals where needed for real estate and business interests,
Make sure legal debts are paid,
Settle any remaining tax bills that need to be paid, and
Search for unknown assets and creditors.

Your Florida probate attorney may even settle any disputes that may arise among beneficiaries or heirs and handle potential conflicts that arise.

The probate laws vary between the states, and even between the jurisdictions in Florida. Finding a Florida probate attorney who serves your local community can prove invaluable. She will not only know the local laws and regulations but can give you legal advice based on her experience in the community. She will have a deep understanding of local statutes, procedures, and court systems, and have local relationships including the judges, court staff, and other professionals involved in the legal process.

We know this article may raise more questions than it answers. In our law firm, we work to protect your peace of mind, especially when a loved one passes. When thinking of the future regarding the probate you may need to handle a loved one’s affairs, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menéndez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us today!

Key Reasons Why Your Older Florida Estate Plan May Not Work

Sun, 14 May 2023 21:52:18 GMT

Are you a resident of Florida? Have you created a Florida estate plan? Do you periodically update it? When was the last time it was updated? Do you know what planning tools are included in your Florida estate plan? Most importantly, does your Florida estate plan reflect your current needs, values, family, and the legacy you want to leave at the time of your passing?

At Menendez Law Firm we make sure our clients understand the importance of creating a Florida estate plan. It is important that clients take action to implement a plan now, so that in a time of sudden crisis or death, their wishes are not left to chance or to the state of Florida mandated process.

We always remind our clients to keep in mind that estate planning is a lifetime journey. This means that from time-to-time, there may be reasons to modify or update the estate plan. In other words, estate planning should not be a simple “To Do” item, that once done, it is put away and left unattended. Instead, your estate plan should be reviewed at least every three years, if not every year, to make sure, that no matter what life throws your way, your estate plan will still work the way you need it to.

Also, while many people focus on the assets when considering estate planning, it is important to remember that your estate plan is a vital part of not only your estate (i.e., your assets) but also your overall health and well-being. That is, a comprehensive estate plan will include the health care directives that allow you to be in control of all your health related decisions. In other words, estate planning should also address what would happen with your assets and your person in the event of incapacity. Many of our clients tell us that the most important and rewarding part of developing their estate plan is the peace of mind they feel knowing that what they love most, is, and will be, protected against uncertainty, potential harm, and confusion.

Here are just a few of the complications we often see in old estate planning documents that have not been maintained.

1. There is a change in the laws. As time passes, laws change; this will require for even the best drafted estate planto be updated. It is important to periodically review your estate plan to make sure laws governing your plan are still in effect, or whether there are more advantageous or new laws that should be incorporated into your plan.

2. There is a change in your state of residency. During the COVID pandemic, many people moved to sunny Florida, and brought their out-of-state plans with them. However, the most adequate estate plan takes into account both federal and State laws. Therefore, if you have recently moved to Florida (or another state, for that matter), but your estate plan was designed and included the laws of another state, there is a great likelihood that your documents do not comply with all Florida laws to maximize the benefits of your plan.

3. There is a change in your family structure. Often the family has changed. Births, deaths, the kids are now adults, and divorces are just the start of the family structure changes that can impact your estate plan. These changes can impact who you will appoint to handle your affairs in the event of incapacity, as well as who will inherit from you at the time of your passing, and how.

4. There is a change in the decision makers. Similar to the changes to your family structure, the person or persons you want to make decisions for you in the event of your incapacity or death may change over time as well. Alternatively, perhaps you no longer want the persons initially appointed to serve in that role. It is critically important to be mindful that you do not want to be in the position, at a time when you are most vulnerable, that you do not have a decision maker in place to immediately manage either your health or your finances.

5. There is a change in the goals for your legacy. As we all know, things change over time, and this may hold true for your legacy. What you wanted five years ago may no longer be the case today. By periodically reviewing your plan, you can ensure that your plan reflects what you want both now and in the future.

We know this article may raise more questions than it answers. And that is exactly what estate planning should do: create questions to allow you the opportunity to resolve in advance the many uncertainties that life can bring your way. This is why it is so important to develop a relationship now with your Florida estate planning attorney, and to let your attorney know when there are changes in your family structure .

Why Did the Agent’s Wife Get Wealthy from Marilyn Monroe’s Estate?

Fri, 20 Aug 2021 15:33:54 GMT

Marilyn Monroe was an American actress, singer, and model, well known as a global symbol of beauty and glamour.

Marilyn grew up in an orphanage and foster homes because her mother spent most of her adult life in mental institutions and Marilyn did not have a relationship with her father. The actress had a passion for reading poetry, even writing some herself. She loved animals, cooking and children.

Marilyn got divorced three times and did not have children of her own. Sadly, she died at a very young age, only 36 years old, from a drug overdose in August 1962.

With respect to Estate Planning, the actress had only prepared a Will, in which she left money to care for her mother until she died, to her half-sister, who she met when she was 12 years old, and to a poet friend and his wife. But she left the bulk of her estate, valued under $1 million, to her acting coach, Lee Strasberg.

Marilyn was very close to Strasberg and his wife, Paula. They were like the parents she never had, which perhaps is why she wanted them to benefit from her fortune and protect her legacy. But when Lee Strasberg died in 1982, Marilyn’s estate passed to his second wife, Anna, a Venezuelan actress who had never really known Marilyn at all.

Anna eventually hired CMG Worldwide, a licensing firm, to use Marilyn’s image and likeness with hundreds of companies including Coca-Cola and Mercedes Benz, earning millions from it. She also auctioned several personal belongings of the actress, such as the famous dress Marilyn wore to President John F. Kennedy’s birthday party. Approximately 30 years after Marilyn’s death, Anna sold what she still had to a third company for over $20 million.

To this day, Marilyn is a worldwide recognized icon. And more than half a century after her death, her legacy continues generating revenue. Marilyn was listed by Forbes as the number six top-earning deceased celebrity as of 2012, with approximately $15 million. The actress became a multimillion-dollar brand after passing away.

The moral of this story is that because all Marilyn prepared was a Will, she could not impose conditions on the wealth or inheritance she left. This resulted in her legacy ending up in the hands of a stranger who benefited from her image and heirlooms.

Instead of leaving her inheritance outright to her coach Lee Strasberg, Marilyn should have set up a Trust to benefit Strasberg during his lifetime and, after his passing, the remaining wealth could have gone to organizations, charities, or other individuals of her choosing. This would have ensured that Marilyn’s true wishes were realized. But because a Will was the only tool used in her planning, we will never know what she really would have wanted.

How Can You Avoid This?

If you want to learn more about how to plan for your future to make sure you remain in control of your decisions while leaving a lasting legacy for your family, we invite you to call our office at (954) 963-7220 to speak with a member of the Menéndez Law Firm. You may also want to watch the video series on our YouTube channel where we talk about Estate Planning in detail. Or if you want to join us for the next live Wills, Trusts and Estate Planning webinar on Zoom you can register at no charge on our website www.menendezlawfirm.com

Creating a Trust: What You Need to Know

Fri, 02 Jul 2021 20:05:43 GMT

by Estate Planning Attorney Nydia Menéndez

You have probably heard some common myths about Trusts: “A Trust is only for wealthy people,” or “I don’t have a great deal of assets, so why do I need a Trust?” Others may think “I already have a Will, isn’t that enough?” or “A Trust is too expensive.”

But, if this was a True or False quiz, the response to each of those myths would be a big, fat FALSE!

What is a Trust?

Here we will be talking about a Revocable Living Trust, which is the basic Trust most frequently used in Estate Planning.

A Trust is a legal agreement where you as the Grantor, the creator of the Trust, transfer your assets to the Trust, and give specific instructions to the Trustee – the person who manages the assets in the Trust – as to how to manage the assets for the benefit of the Beneficiary.

While you are alive and have capacity, you are all three of these parties. You are the Grantor; you are the Trustee; and you are the only Beneficiary. This means you are not releasing any control or benefit of the assets in the Trust. Essentially, nothing really changes.

Why have a Trust?

A Trust acts as a stand-by device – a “just in case” tool, so that you can have a plan, always be in control, and protect what really matters.

For example, if something were to happen to you, because you have appointed a Successor Trustee for the Trust, there will immediately be someone, chosen by you, to manage your assets. Since the assets have been transferred to the Trust and there is a Successor Trustee, there is immediate management of the assets without court involvement!

Avoiding Guardianship

Should you become incapacitated during your lifetime, the Successor Trustee would manage the assets in your Trust for your benefit. Without a Trust, you would need to go to court for a Guardianship, and the court would supervise the management of your assets. As you can see, it is much better to have a Trust in place with a Successor Trustee, especially because statistics tell us that 70% of persons age 65 and older will experience some form of incapacity in their lifetimes.

Avoiding Probate

A Trust is also very useful when the Grantor passes away. With the assets already in a Trust, and a Successor Trustee appointed, there is no need to go through the Probate process to transfer assets to beneficiaries. What’s more, distributions to the beneficiaries could also be in a Trust, instead of outright, which can be beneficial in many cases.

Preserving Your Wealth

If your beneficiaries are minors, have creditor issues, are contemplating divorce, or receive government benefits, outright distributions to them are likely not desirable. These distributions will be best preserved if they are done into a Trust with specific terms matching the unique needs and circumstance of your beneficiaries.

You are in Control

A Trust has a built-in succession plan, which includes a Successor Trustee, who essentially substitutes for you. Your estate would not need to go through the judicial process of Guardianship or Probate, and you can control distributions to protect the beneficiaries when your assets are placed in a Trust.

If your goal is to put your affairs in order, a Trust should be a key part of your Estate Plan.

Where to Get Started?

If you want to learn more about how to plan for your future to make sure you leave a legacy for your loved ones, we invite you to call our office at (954) 963-7220 to speak with a member of the Menéndez Law Firm who can help you navigate the process of creating a unique Estate Plan to meet your family’s needs. You may also want to watch the video series on our YouTube channel or join us for the next live Wills, Trusts and Estate Planning webinar on Zoom by registering at no charge on our website www.menendezlawfirm.com

Do I Need a Will or a Trust?

Fri, 02 Jul 2021 20:05:36 GMT

by Estate Planning Attorney Nydia Menéndez

If you have reached a time in life when you are planning for the future, you have most likely have come across two of the most commonly known Estate Planning tools: A Last Will And Testament and A Revocable Living Trust. Both documents provide instructions on how your assets will be distributed when you pass away. However, it is important to know the differences between these two alternatives work and what it means to have one or the other.

Having a Last Will

Everyone has an Estate, which is what is left when we pass away. An Estate consists of assets – our stuff. A Will is a document which activates at death, in which you leave specific instructions regarding the distribution of those assets. The instructions are limited as to simply who will receive the assets, not how they will receive them.

For example, let’s assume you have three children, or three people to whom you want to leave your assets. One is super responsible, but is contemplating divorce; the other is the picture of irresponsibility and recklessness. (With this person money is like salt in water – it vanishes!) The third person has special needs and will likely never be self-sufficient.

If you use a Will to leave assets to these individuals, the entire inheritance could be lost to divorce, lawsuits, creditors or poor decisions. You could even cause the special needs individual to lose government benefits to which he or she would otherwise be entitled. As you can see, using a Will to distribute assets to those you love and want to bless, could do more harm than good.

Many people think a Will is the key to leaving their affairs in order. But that is not the case. In fact, Wills are very ineffective because in addition to what I’ve already mentioned, they must be administered by a court through the Probate process. That’s a lengthy and expensive undertaking.

Having a Revocable Living Trust

A Trust, on the other hand, is a document which creates a separate entity. You can think of a Trust as a company; the Trustee would be the President or the manager of the company; and the Successor Trustee would be similar to the Vice President of the company. In other words, a Trust has the ability to receive, keep and manage your assets. At the same time, a Trust survives the person who created the Trust in the first place. If you use a Trust for your planning, you can simultaneously create sub-Trusts for the distributions to each beneficiary to address their very unique needs.

With a Trust, if you become incapacitated, there would be no Guardianship or Living Probate, because you would have already nominated the person or persons authorized to manage your assets: the Successor Trustee(s).

Also, when you pass away, there would be no need for Death Probate, because your assets are already in a Trust, you’ve nominated Successor Trustees, and you have left instructions about what should happen with your assets. You’ve not only designated who should get your assets, but also how your beneficiaries should get them. This is a huge difference between a Will and a Trust.

A Trust can be managed by the Successor Trustee, who was originally appointed by you when the Trust was created. Thus, an inherent benefit of the Trust is that the person who created the Trust (you) nominates the Successor Trustee, and because the assets are already in the Trust, there is no need for court involvement. Hence, you are always in control!

These are just a few examples, which clearly show why a Will is usually not the optimal Estate Planning tool, and a Trust is likely the much better alternative.

Where to Get Started?

Points to Consider Regarding a Will

Fri, 02 Jul 2021 20:02:44 GMT

by Estate Planning Attorney Nydia Menéndez

This may be the most myth-dispelling article you will ever read on the topic of Estate Planning. That’s because Wills are the Estate Planning tool with which most people are familiar. And people also believe Wills are sufficient for their needs. In fact, most clients call our office asking to prepare a Will so that they can leave their affairs in order and their loved ones taken care of. But is a Will the best way to do that?

Our goal is to clarify what a Will really is, as well as what it is not.

What is a Will?

A Will is a legal document that activates at death, in which you give specific instructions about how you want your assets distributed when you pass away. In the Will you also nominate the Personal Representative. This is the person who will be in charge of carrying out your wishes.

The Will only focuses on distribution of assets, and – as if minor children were assets – a Will can also be used to name who you would want to be Guardians for any minors left behind.

The Probate Process

One of the biggest problems with a Will is that it has to be presented to a court for administration. That is known as the judicial Probate process. And, with respect to the appointment of Guardians for minors, that too would have to be court approved, through the judicial Guardianship process.

No Incapacity Protection

Another huge shortcoming of a Will is that it activates at death, which means that a Will provides no plan in the event of incapacity. Statistically, 70% of persons over the age of 65 will experience some form of incapacity during their lifetimes. So, failing to consider incapacity leaves a big gap in planning. In other words, if you do become disabled in the future your family would need to go through the Guardianship process for the courts to determine who would manage your affairs.

A Will Doesn’t Capture What Matters Most

When we ask our clients what is most important to them, they answer family, friends, health, values, relationships, shared experiences, memories, etc. Clients never tell us that what matters most is their assets or their stuff. Yet, the main role of a Will is the distribution of assets. In other words, a Will only addresses what likely matters least to many of us!

Still, a Will is the most commonly known and requested Estate Planning tool. I think the reason for this is because many people think a Will constitutes an Estate Plan. But, when I explain to my clients what a Will is, compared to other planning alternatives, they usually realize that a Will is not what they actually want.

Just know this: a Will by itself will likely not accomplish your Estate Planning goals. Because if your goal is to put your affairs in order, a Will is not going to get you there!

Where to Get Started?

What is Guardianship?

Fri, 02 Jul 2021 20:01:26 GMT

by Estate Planning Attorney Nydia Menéndez

When people hear the word “Guardianship”, they tend to think of someone taking care of a minor child. However, Guardianship also comes into play when someone over 18 years old is alive but does not have capacity to care for themselves or manage their affairs. The incapacitated person, who could be a minor, someone with special needs or a disability, or any person who has lost capacity, is the Ward. The person with responsibility and authority over the Ward is the Guardian. The Guardian could be an individual or institution appointed by the court. The judicial process of appointing and supervising the Guardian’s legal rights of the Ward is known as the Guardianship process.

The Court is in Control

Guardianship requires administration of the Ward’s person and/or property under the court’s supervision. This means that the court, not the Ward or the Guardian, is in control. To do this, the court will require periodic accounting (usually on an annual basis) and the court must approve all expenses, even though the funds are the property of the Ward.

Responsibilities of the Guardian

Serving as a Guardian is a huge responsibility, and Florida has very strict protocols which need to be met to preserve a Guardianship appointment. A Guardian must be represented by an attorney who will serve as “attorney of record.” Guardians, other than financial institutions and public Guardians, are usually required to furnish a bond and may be required to complete a court-approved training program.

The Clerk of the Court reviews all annual reports of Guardians and presents them to the court for approval. Guardians who do not properly carry out their responsibilities may be removed by the court.

What are the Different Types of Guardianships?

There are several forms of Guardianships. Some Guardianships are temporary, as would be the case for Guardianships of minors or persons who are temporarily incapacitated. Or, if the court finds the Ward partially incapacitated, it will appoint a limited Guardian to perform only those rights the Ward is incapable of exercising.

Managing Property Left to Children

In Florida, children under the age of 18 cannot own property which exceeds $15,000 in value. In such cases, the court must appoint a Guardian over that child’s property. This is one reason I always recommend establishing a trust for any type of gift or inheritance to minors. Doing so avoids Guardianship. The judicial process of Guardianship of minors ends when the child reaches the age of majority. At that time, any property that was being supervised by the court will be distributed to that child/adult, without further supervision – which I’m not sure is a good thing! Eighteen-year-olds and a sudden influx of significant assets often are not a good combination.

Creating Emergency Legal Documents

Whenever possible, Florida laws attempt to impose the least restrictive alternative to protect people who the law deems are incapable of caring for themselves and managing their financial affairs. This is why it is so important to create emergency legal documents such as advance health care directives, a durable power of attorney. Doing so could very well avoid the Guardianship process, leaving you in full control to handle your affairs privately.

How Can You Avoid Guardianship?

If you want to learn more about how to avoid the Guardianship process, we invite you to call our office at (954) 963-7220 to speak with a member of the Menéndez Law Firm who can help you navigate the process of creating a unique Estate Plan to meet your family’s needs. You may also want to watch the video series on our YouTube channel or join us for the next live Wills, Trusts and Estate Planning webinar on Zoom by registering at no charge on our website www.menendezlawfirm.com

Probate: A Nightmare to Avoid

Fri, 02 Jul 2021 20:00:03 GMT

by Estate Planning Attorney Nydia Menéndez

When someone passes away, their estate consists of everything left behind, including all the deceased person’s assets. Many people think a Will is the key to planning and leaving their affairs in order for when the time comes. But that is not the case. In fact, Wills are very ineffective because they must be administered by a court through the probate process.

Simply stated, when someone dies, with or without a Will and nothing more, the dreadful probate process is required. There are several reasons why this should be avoided.

Personal Representative

In a Will you can nominate a Personal Representative to manage the affairs of the estate. The court will usually appoint that person who was named in the Will, and honor the wishes of the decedent relative to distributions as outlined in the Will.

If no Will exists, the court will appoint a Personal Representative and determine distributions, with both of these critical matters handled simply according to the guidelines set in the Statutes.

Either way, the Personal Representative must file an inventory of the assets in the estate, and pay creditors. The court will resolve any disputes, and transfer title to the assets to the rightful heirs or beneficiaries.

Cost

Probate is expensive! The cost of probate could range between six to ten percent of the total estate value. There are court fees, attorney fees, accounting fees, conservator fees and publication fees, all of which adds up to considerable sums of money. For example, for an estate valued at one million dollars, the probate fees would be approximately $80,000, leaving less money in the estate for distributions to the beneficiaries.

Lack of Privacy

Additionally, probate is open to the public, meaning that nosy neighbors and friends can find out details about your assets, your private life, and how much you left to your beneficiaries. In contrast, by having a Trust in place, you can keep your affairs private and your loved ones out of court.

Duration and Additional Probates

Another downside of probate is that it takes a really long time – on average, no less than six months to get resolved. During this period, the assets are frozen while the probate process is taking place, which means your heirs are not in control. And if there is property in another state, a probate proceeding generally known as “Ancillary Probate” will be required in that state as well.

Family Involved in Court Proceedings

Whether an untitled asset, an asset with beneficiary designations like life insurance and retirement accounts, or titled assets like real estate, the use of a Will and nothing more will most likely not accomplish all that you would want or need, largely because of the horrors of probate. Equally disappointing is the fact that if you have a Will, you took steps to plan, and probably thought you were all set, though you are not.

Instead, your family faces uncertainty, disruption, and the additional unexpected expenses of having to go through the judicial probate process. Certainly, you would not want them to face all that, especially at such a painful moment in their lives. The good news is that with proper planning probate can, and should, be avoided. There is definitely a better way!

How Can This Nightmare be Avoided?

If you want to learn more about how Estate Planning applies to you and how to avoid the probate process, we invite you to call our office at (954) 963-7220 to speak with a member of the Menéndez Law Firm who can help you navigate the creation of your Estate Plan. Additionally, you may want to watch the video series on our YouTube channel, where we cover a variety of relevant topics and frequently asked questions. You can also join us for the next live Wills, Trusts and Estate Planning webinar on Zoom by registering at no charge on our website www.menendezlawfirm.com

Estate Planning – Six Critical Considerations

Fri, 02 Jul 2021 19:58:38 GMT

by Estate Planning Attorney Nydia Menéndez

Everyone has an Estate, including you. But what exactly is an Estate? It’s everything you own, and everything that is left when you pass away. Estate Planning, then, is having a plan in advance to ensure that when the time comes, your wishes are carried out with respect to matters related to your health, your person, your children and grandchildren, and, yes, your assets.

1 – The Most Basic Form of Planning

The most obvious aspect of Estate Planning is planning for our own death, which is why Estate Planning is a universal need.

Planning for death involves the distribution of assets. This means you provide instructions stating to whom you want to leave your assets, what you want them to receive, how you want them to receive it, and when they should receive it. You will obviously want this to happen with the least amount paid in taxes, legal fees, and court costs. Your Estate Planning should take all that into account.

2 – Planning for Incapacity

But Estate Planning is much more than simply planning for death and the distribution of assets. It should also include planning for the very real possibility that at some point during your life you may not be able to manage your own affairs. Statistically, 70% of persons over the age of 65 will experience some form of incapacity, so failing to plan accordingly leaves a big gap in planning.

3 – Choosing Who Will Manage Your Affairs

A crucial part of any planning is determining who will manage your affairs, how you will choose this person or persons, and having contingencies.

It is possible that the person you would prefer as your first choice may not be available for whatever reason. They may be traveling, incapacitated themselves, deceased, or no longer willing to serve, which is why it’s important to name an alternate person, just in case. In fact, I always recommend listing at least three options, in order of preference.

4 – Tailoring Your Plan to Your Unique Situation

A good Estate Plan must be tailored to your unique facts and circumstances, and address the specific needs of your family and each of its members.

When you plan, you are giving those you love the valuable gift of protection for generations to come. The decisions you make by creating an Estate Plan become part of the documents we prepare for you. This means you will remain in control, and your life lessons, stories of your experiences, and words of wisdom can be preserved for generations to come.

5 – Protecting Your Beneficiaries’ Inheritance

Another important part of planning is the management and preservation of your beneficiaries’ inheritance. For example, in Florida, minors cannot own property valued over $15,000. This means that leaving any significant wealth to minors would require the courts to be in control if you don’t plan. But even more tragic is the fact that when the child turns 18, the courts will release the property to them. In our experience 18-year-olds and wealth are often not a good combination.

With proper planning you could protect your children’s/beneficiary’s inheritance in the event of the following situations:

• Your spouse remarries after you pass away.

• The beneficiaries are not mature enough to receive the fruit of your life’s work.

• They have creditors who could garnish or lien their assets.

• They divorce, which could jeopardize up to half of their inheritance.

• They struggle with any addictions – drugs, alcohol, gambling, spending, etc.

Having a proper Estate Plan can guarantee that beneficiaries will not squander all you worked so hard for, nor will they put their lives in greater danger.

Lastly, if any of your children or beneficiaries have special needs which would entitle them to receive government benefits, making them a beneficiary could jeopardize those benefits. Having a special needs trust in place will avoid this potentially serious consequence.

6 – Getting Started

If you want to learn more about how Estate Planning applies to you, we invite you to call our office at (954) 963-7220 to speak with a member of the Menendez Law Firm who can help you navigate the process of creating your Estate Plan. Additionally, you may want to watch the video series on our YouTube channel, where we cover a variety of relevant topics and frequently asked questions. You can also join us for the next live Estate Planning webinar on Zoom by registering at no charge on our website: www.menendezlawfirm.com

bfzw9578-rox62d4gj8v6e3p2

Florida Monthly Tax Tip-Florida Sales Tax Audit? – How To Prepare

What To Expect in a Florida Sales Tax Audit?

�� Let’s Break It Down – 4 Key Steps to Prepare

1️⃣ Step 1: Be Selective & Strategic With Documentation

2️⃣ Step 2: Review Before You Submit

3️⃣ Step 3: Reconcile With Federal Returns

4️⃣ Step 4: Keep Your Books Audit-Ready Year-Round

�� Got an Audit Notice?

Florida Monthly Tax Tip-What To Expect in a Florida Sales Tax Audit?

What To Expect in a Florida Sales Tax Audit?

1️⃣ Sales

2️⃣ Fixed Assets ﻿

3️⃣ Consumables

4️⃣ Commercial Rents

�� A Few Key Rules to Remember:

�� Documentation Requests:

⚖️ Presumption of Taxability:

⏳ Deadlines and Procedures Matter:

�� Have you received an audit notice?

Florida Monthly Tax Tip-Why Your Business Got Picked for a Florida Sales Tax Audit

��️ Why Your Business Got Picked for a Florida Sales Tax Audit

�� Common Audit Triggers

�� Have you received an audit notice?

Florida Monthly Tax Tip-Did You Pay Use Tax on Out-of-State Purchases?

Understanding Admissions

1. ��️ When It Applies:

2. �� Rate:

3. �� Common Examples:

4. �� Reporting It:

Florida Monthly Tax Tip- Navigating Florida Sales Tax in the Digital Age

Understanding Admissions

1. �� Economic Nexus Threshold:

2. �� Marketplace Facilitators:

3. �� Taxable vs. Nontaxable Goods:

4. �� Documentation and Recordkeeping:

Florida Monthly Tax Tip- Understanding Admissions

Understanding Admissions

1. Charging the Tax:

2. Tax Due Date:

3. Exemptions and Nuances:

Florida Monthly Tax Tip: A Glimpse into Multi-State Income Taxation

A Glimpse into Multi-State Income Taxation

1. The Type of Tax:

2. The Type of Activity:

3. The Type of Product:

Florida Tax Tip of the Month: Demystifying Sales Tax Nexus – What You Need to Know!

Demystifying Sales Tax Nexus – What You Need to Know!

1. The State A to State B Connection:

2. The Waiting Game and the Supreme Twist:

3. The Unexpected Plot Twist:

4. Enter Economic Nexus and the Wayfair Saga:

5. Florida Joins the Party:

6. The Bottom Line: Here's the scoop:

Florida Tax Tip of the Month: Separately Stated and Itemized Charges

Separately Stated and Itemized Charges

So, what exactly should you be "separately stating and itemizing"?

Did you notice who bears the burden of overcoming the presumption that all the charges on an invoice (or in a transaction) are taxable?

But hey, let's get real. Some situations make it tricky (or "not practicable," as the statute puts it) to separately state and itemize charges.

Florida Tax Tip of the Month: Unraveling Florida's Food Tax Mysteries

Unraveling Florida's Food Tax Mysteries ������

1. Liquid Dilemma:

2. ��Water Works:

3. Bakery Bonanza:

4. Snacks or Candy Conundrum:

Florida Tax Tip of the Month: Florida Sales Tax Applies To The Sale of Tangible Personal Property – Not Really!

Florida Sales Tax Applies To The Sale of Tangible Personal Property – Not Really!

Take a simple tire rotation and balance, for instance:

Surprising examples of tangible personal property services that become taxable:

Exemptions:

"Optional":

¿Qué es la Ley de Transparencia Empresarial?

What is the Corporate Transparency Act?

Florida Tax Tip of the Month: The True Costs of Rents and Other Paid Uses of Real Property.

Cost of Rents and Other Paid Uses of Real Property.

The True Costs of Rents and Other Paid Uses of Real Property

1. Familiar Faces, Taxable Spaces:

2. Accrual vs. Cash:

3. Tax Rates and Roller Coasters:

4. More Than Just Buildings:

What To Expect in a

Florida Sales Tax Audit?

�� Let’s Break It Down –
4 Key Steps to Prepare

What To Expect in a

Florida Sales Tax Audit?

2️⃣ Fixed Assets

Unraveling Florida's Food Tax Mysteries

��