Congratulations to Caitlin C. Szematowicz, Andrew R. Pardun, Aubrey O. Dicus, Jr., Bruce Marger, Howard P. Ross, Jonathon Douglas, Robert Kapusta, Jr., and Sean K. McQuaid for being recognized among The Best Lawyers in America®.

Each attorney has been chosen for professional excellence in the 2023 edition of The Best Lawyers in America® for work in specialized areas. Earning this title is one of the highest honors an attorney can earn.

The Best Lawyers in America®, “The Best at What We Do”

Best Lawyers is a company founded on the principle that “the best lawyers know who the best lawyers are.” They have broadcasted respected peer-review publications in the legal field for over four decades.

To be recognized by Best Lawyers is one of the most highly esteemed and widely regarded titles by clients and professionals in the legal community. The publications of Best Lawyers are known for their reliable and unbiased legal recommendations.

They compile a list of the most outstanding lawyers through a rigorous peer-review survey process, which includes tens of thousands of confidential evaluations from lawyers—only the top lawyers who receive enough votes and approval of Best Lawyers to earn this acclaimed title.

Furthermore, Best Lawyers in America® is a company proudly committed to diversity, equity, and inclusion. They actively focus on creating and running a company that advocates for cultural programs and diversity.

Howard P. Ross

Howard P. Ross is recognized in the 2023 edition of Best Lawyers for his practice in Corporate Law, Mergers and Acquisitions Litigation, Commercial Litigation, and Commercial Transactions / UCC Law. He has also been recognized as “Lawyer of the Year” for his work in Corporate Law.

Howard is a respected member of the Florida Bar, with over 50 years of membership. In addition, he’s a member of the American Bar Association.

Howard is a legal expert dedicated to professional excellence in Business Litigation and Civil Litigation. He’s devoted his career to a broad range of business litigation and business transaction law, including:

• Business Structures
• Business Disputes
• Contracts and Other Agreements
• Real Estate Matters
• Commercial Title Insurance
• Residential Title Insurance

Thanks to Howard’s extensive experience, he can quickly and effectively analyze complex litigation and transactional/relationship matters. Another unique strength is his ability to determine the course of action that is in the client’s best interests. He is known for his strategic work in the transactional/relationship area because he is sensitive to preventive law measures. With his understanding of planning and avoiding future disputes, he can create resolutions and make future disputes less difficult and stressful.

Howard is Board Certified in Business Litigation Law and in Civil Trial Law. In addition, Howard is a former arbitrator and former member of the American Arbitration Association’s National Commercial Roster of Neutrals. Howard is a member of The Large, Complex Commercial Case Panel and the M&A and Joint Venture Panel.

In addition to achieving the Best Lawyers in America Award, Howard is recognized as a Florida Super Lawyer, has a Martindale-Hubbell AV Preeminent rating, and is a Recipient of the Albert Nelson Marquis Lifetime Achievement Award. He’s also achieved the following awards: Martindale-Hubbell Top Rated Lawyer in Real Estate Law, Lawyers of Distinction, America’s Most Honored Professionals, and has an AVVO 10 rating.

Sean K. McQuaid

Sean K. McQuaid is recognized in the 2023 edition of Best Lawyers for his practice of Plaintiff’s Personal Injury Litigation.

Sean McQuaid is currently the President of Battaglia, Ross, Dicus & McQuaid, P.A. He practices personal injury, car accidents, motorcycle accidents, truck accidents, wrongful death, and criminal law.

Sean was also the President of the St. Petersburg Bar Association for 2020-2021.

Since joining the firm in 2000, he has been the fastest rising lawyer in the firm’s history. Sean joined the firm as an associate in 2000, became a shareholder in 2006, and became a named partner in 2013. Now, he is the President of the firm.

His personal injury practice is one of the top in the Tampa Bay area. He consistently receives 5-star reviews from satisfied clients who speak highly of his work.

Sean is a member of the Florida Bar, the Bar of the Federal District Court for the Middle District of Florida, the St.Petersburg Bar Association, the Clearwater Bar Association, the National Association of Criminal Defense Attorneys, the Pinellas Association of Criminal Defense Lawyers, the Florida Association of Criminal Defense Lawyers and various other legal associations.

Sean began his legal studies at Stetson University College of Law in 1997, graduating with his Juris Doctor and Masters in Business Administration degrees. During law school, he was a member of the Moot Court Board and competed across the country.

Sean also attended Princeton University from 1993-1997, where he was a 4-year varsity letterman and captain of the Princeton University Baseball Team.

Sean’s diverse experiences as a leader and an athlete contribute to his straightforward and competitive approach to practicing law. He is committed to excellence and determined to win.

Aubrey O. Dicus, Jr.

Aubrey O. Dicus, Jr. is recognized in the 2023 edition of Best Lawyers for his practice in Commercial Litigation, White-Collar Criminal Defense, Defendants Personal Injury Litigation, and Plaintiffs Personal Injury Litigation. He is the former President of Battaglia, Ross, Dicus & McQuaid, P.A.

Aubrey graduated from Emory University with a degree in Economics and attended Stetson Law School from 1971-1974. Afterward, he partnered with Anthony S. Battaglia and Howard P. Ross.

His almost 50 years of litigation experience has involved everything from personal injury and criminal defense to civil and commercial litigation. Aubrey has represented clients and won multi-million dollar claims. In addition, he’s represented government agencies, including the Pinellas County Sheriff’s Department.

Best Lawyers in America is just one of many accolades Aubrey has earned. He’s also been a Florida Super Lawyer for several years and maintains a Martindale-Hubbell AV preeminent highest rating.

In addition to his myriad of awards and honors, he is highly respected for his involvement and commitment to the local legal community. He is a previous President of the St. Petersburg Bar Association and former President of the Pinellas County Criminal Defense Lawyers’ Association. He also served as a founding member of the Board of Directors of the Florida Association of Criminal Defense Lawyers.

Aubrey also served as the Master of the Bench with the American Inns of Court, Pinellas County Chapter, and Barney Masterson Inn of Court. Furthermore, he received “The Barney” for his professionalism, civility, ethics, and legal excellence.

Aubrey is dedicated not only to serving in the legal field but to his local community as well. In addition to all of his professional and community legal services, Aubrey also has:

• served on the Stetson Law School Advisory Council
• served as President of the Stetson Alumni Association
• been Member of the Tampa Bay Chamber of Commerce
• Was appointed as the Governor’s Representative on the Community Development Corporation, Neighborhood Housing Services, Inc.
• served on the Pinellas Emergency Mental Health Services Advisory Board and Finance Committee

Jonathon Douglas

Jonathon Douglas is recognized in the 2023 edition of Best Lawyers for his practice in Insurance Law, Insurance Litigation, and Plaintiff’s Personal Injury Litigation.

Jonathon prioritizes fighting for the rights of his clients. He’s distinguished for his compassionate approach to all his clients and knows their recovery and well-being are paramount.

Jonathon attended the University of Florida, earning his BA and BS, both with honors. He then went on to attend Stetson University College of Law. There, Jonathon learned and practiced the art of trial advocacy. He also clerked for the Honorable Shawn Crane and interned at the State Attorney’s Office and Public Defender’s Office during his time at Stetson.

Following his graduation, Jonathan went on to work as Assistant Public Defender for the Sixth Judicial Circuit. Then he moved on to defending the rights of the accused in State and Federal Courts as an associate with the Hebert Law Group. From there, he worked as a Civil Trial Litigator and partner with Goodis, Thompson & Miller representing some of the largest insurers in Florida.

Jonathon uses his inside knowledge of insurance practices to help policyholders hold insurance companies accountable. He knows how to win a successful insurance claim.

Caitlin Szematowicz

Caitlin Szematowicz is a Partner at Battaglia, Ross, Dicus & McQuaid, P.A. She has been practicing Civil & Commercial Litigation, Appeals, and Employment Law with the firm since August 2012.

She is not only distinguished for her professional excellence but also known for her active involvement in the legal community. The Best Lawyers in America® is just one of Caitlin’s many accolades. She has also been recognized as a “Rising Star” Florida Super Lawyer for five consecutive years (2018-2022) and was named Florida Trend Legal Elite in 2022.

While she dedicates her career work to the service of others, Caitlin has successfully built an impressive extracurricular portfolio involving numerous leadership positions. She currently serves as the Past President of the Barney Masterson American Inn of Court. In addition, Caitlin has previously served as the President of the St. Petersburg Bar Foundation and Past President of the Pinellas County Trial Lawyers Association. She was also a member of the Board of Trustees for the St. Petersburg Bar Foundation for six years.

Caitlin has served on the St. Petersburg Bar Foundation’s annual professionalism seminar committee and is appointed to the Sixth Judicial Circuit’s Professionalism Committee. She was also selected twice as a speaker for the Florida Bar Practicing with Professionalism CLE.

Her peers chose her as a recipient of the Barney Masterson American Inn of Court’s Thomas E. Penick, Jr. “The Rock” Award for her exceptional service to the community.

Caitlin graduated Magna Cum Laude from the University of Florida Levin College of Law in May 2012. Before that, she graduated Cum Laude from the University of Tampa’s Honors Program in 2008.

Caitlin graduated from law school with Pro Bono and Criminal Justice certificates. She was also a notable research associate with the Florida Innocence Commission, contributing significant research work. As such, she was recognized for her outstanding research contributions to the Florida Innocence Commission’s Final Report to the Supreme Court of Florida.

During her school years, she worked as an appellate law clerk for a firm in Washington, DC. She also was an extern at the US Attorney’s Office and a Certified Legal Intern at the State Attorney’s Office.

Andrew R. Pardun

Andrew R. Pardun was recognized in the 2023 edition of Best Lawyers for Real Estate Law.

He is currently a partner with the firm. He specializes in the following areas: Commercial & Residential Title Insurance, Commercial and Residential Real Estate Closings, and Business Law.

Andrew received his Juris Doctorate Degree at Stetson University College of Law and his MBA with honors. He completed his MBA with a perfect 4.0 GPA and was a member of the Beta Gamma Sigma Business Honors Society.

In addition, Andrew completed his Master of Laws Degree in Taxation at Villanova University. Before that, he attended the University of South Florida for his undergraduate studies, majoring in Finance. He also served as the President of the Sigma Chi Fraternity and Vice President of the Interfraternity Council.

Andrew’s has been recognized him in the legal community with a perfect 10/10 ranking from AVVO. He’s also a Super Lawyer’s Rising Star, one of the most distinct honors available to Florida attorneys.

Andrew is comfortable in leadership positions and has continuously held them throughout his life. After college, Andrew gained experience working in the financial services industry and co-owned a real estate investment firm in Tampa.

Andrew is the current Treasurer of the St. Petersburg Bar Association. He has also served as the Chairman of the Real Property Section of the St. Petersburg Bar Association.

Mayor Rick Kriseman recently appointed Andrew to the City of St. Petersburg’s Nuisance Abatement Board. He is also an active member of the Attorneys’ Title Fund, Pinellas Realtors Organization, and The Barney Masterson’s American Inn of Court.

Bruce Marger

Bruce Marger is recognized in the 2023 edition of Best Lawyers for his practice in Litigation and Practice in Trusts and Estates.

Bruce is also experienced and practices in the following fields: estate planning, estate and gift tax planning, income tax planning for estates and trusts, probate and trust administration, and real property law, as well as probate and trust litigation and planning related to qualified plan/IRA distributions.

After graduating from Miami Senior High, he completed his higher education studies at the University of North Carolina and Harvard Law School. Bruce double-majored in Political Science and Accounting. While at UNC, he was also chair of the Debate Council and a member of Phi Beta Kappa and Beta Gamma Sigma. Then, while at Harvard, he concentrated his studies on tax and estate planning.

He is currently an active member of the Florida Bar. In addition, he serves as Chair of the Judicial Poll Committee and Chair of the Real property, Probate, and Trust Law Section. He also contributed to developing the board certification in Wills, Trust and Estates law. Furthermore, Bruce is a Fellow of the American College of Trust and Estate Counsel (ACTEC).

A respected veteran, Bruce served in the US Air Force and Air Force Reserves for 15 years before practicing law. He earned a rank as a Major before leaving the service to practice law full-time. He is married to his college sweetheart, Mary Ann, and they have three children.

Robert Kapusta, Jr.

Robert Kapusta, Jr. is recognized in the 2023 edition of Best Lawyers for his practice in Real Estate Law.

Robert’s expertise in Real Estate Law is varied and extensive; he practices in the following areas: Mergers and Acquisitions, Tax and Estate Planning, and Business and Corporate Law.

Prior to practicing with Battaglia, Ross, Dicus & McQuaid, P.A., Robert practiced with Fisher & Sauls. He received his Bachelor’s degree from Cornell University, Juris Doctor degree from Stetson University College of Law, and Master of Laws (LLM) degree in taxation from the University of Florida College of Law.

Robert is also a Certified Public Accountant and is admitted to practice in all Florida courts.

While not practicing law, Robert volunteers his time and talents to local community organizations. He is passionate about helping local businesses grow. As such, he also helps foster the growth of economic vitality, arts education and appreciation, and capital school improvements.

Additionally, Robert dedicates himself to expanding educational programming opportunities in St. Petersburg. He does so through various leadership positions and civic activities. Aside from his awards as an outstanding legal professional, he’s also won the following awards:

• H. Bernice (“Bernie”) Lodge Lay Person of the Year Award for 2008-2009 from the St. Petersburg Kiwanis Club
• “Hero Among Us” award in 2015 from the St. Petersburg Bar Foundation in recognition of his tireless community service

Elite Attorneys, Helping Clients in Need

The firm would like to congratulate all 8 attorneys on achieving The Best Lawyers in America® award. This would not have been without such wonderful and loyal clients. The goal of each of our lawyers is to put the client’s best interest first.

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About Lama Alqasemi

Lama Alqasemi is an up and coming attorney who recently joined Battaglia, Ross, Dicus & McQuaid, P.A. Her practice areas include: Estate Planning, Charitable Gift Planning, Estate and Trust Administration, Business Succession Planning, and Guardianship.

Ms. Alqasemi is known for being accessible and personable to her clients. She places a high priority on staying connected to her clients and co-workers. Ms. Alqasemi says that some of the most memorable moments in her career as an attorney have been when she was able to find creative ways to help her clients. Ms. Alqasemi finds it extremely rewarding to re-instill hope in the lives of her clients facing hardships. As a compassionate attorney, Ms. Alqasemi has maintained relationships with her clients far beyond assisting them with legal issues.

Ms. Alqasemi is not just a caring attorney; she’s also a competent one. She prides herself on being knowledgeable on relevant legal developments as they pertain to each client’s unique situation.With her training on tax law, she will be able to handle complex issues. With her background, she is able to assess issues through a local, national, and/or international lens.

Her varied life experience, education, and training allow her to approach legal issues uniquely and connect deeply with her clients. As such, Ms. Alqasemi is distinguished for being able to offer exceptional and authentic legal services. During law school, she worked as a clerk at the Department of Justice in Washington, D.C. In addition, she worked as a clerk for Dentons, one of the largest internationally renowned firms in Prague, Czech Republic.

Prior to joining Battaglia, Ross, Dicus & McQuaid, P.A., Ms. Alqasemi worked as an attorney at Absolute Law Group in Ocala, Florida.

Lama Alqasemi’s Education and Background

Ms. Alqasemi completed her undergraduate studies at the University of South Florida with a B.S. degree in Integrative Animal Biology.

She then attended George Mason University in Arlington, Virginia, where she earned her Juris Doctor. After obtaining her Juris Doctor, she went on to earn her Master of Laws in Taxation (LL.M.) from the University of Florida Levin College of Law.

Ms. Alqasemi comes from a large family, which has instilled in her the ability to be a good team player. Being one of five children has taught her the art of negotiating from a very young age. Litigation is not just Ms. Alqasemi’s passion but a family tradition. Her grandfather was also an attorney and is one of her greatest inspirations.

Ms. Alqasemi is a Tampa Bay native, where she grew up and recently relocated back to her hometown. When she’s not helping clients, Ms. Alqasemi loves spending her free time outdoors, in nature. In addition, she enjoys socializing and spending quality time with her friends and family.

Ms. Alqasemi strives to keep a solid and active presence in the local Tampa Bay community. She also commits a considerable amount of her time to educational outreach programs.

She will practice in the following areas at Battaglia, Ross, Dicus & McQuaid, P.A.:

• Estate Planning
• Charitable Gift Planning
• Estate and Trust Administration
• Business Succession Planning
• Guardianship
• Tax Planning
• Probate Administration

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What Are Trusts?

Types of Trusts

Revocable Living Trusts

Testamentary Trust

What Is the Difference Between a Trust and a Will?

Why Set up a Trust? – The Benefits

Remain in Control

Tax Benefits

Avoid Florida Probate Court

Protection

Ongoing Transfers

Trusts Protect Special Needs Individuals or Medicaid Recipients

Key Takeaways – What Are Trusts?

• A trust is a special type of legal document that holds assets for beneficiaries to receive after the trust creator’s death.
• There are the parties involved in trusts: grantors, trustees and beneficiaries.
• Trusts set rules on when and how assets are distributed.
• Trusts ensure your wishes are retained, even after death.
• Trusts can remove the need for probate.

Hire an Estate Planning Attorney for Trusts in St Petersburg, FL

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What Is Probate?

What Is a Probate Lawyer?

Do I Need a Probate Lawyer in Florida?

To Overcome The Technical Hurdles

To Avoid Family Conflict

If a Family Member is Making Threats

Determining Beneficiaries

Challenging the Validity of a Will

• A lack of signing formalities.
• If the person who made the Will lacked proper mental capacity when it was signed.
• Undue influence
• Fraud

Creating Estate Plans

Surviving Spouses

Creditor Claims

Probate Attorney When There Is a Will

Probate Attorney When There Is No Will

Should We Use Summary Administration If Available?

• The Will leaves property to many beneficiaries, who would each have to sign a contract to sell the property and other related papers.
• The beneficiaries include minors, so guardianships may need to be set up until they’re adults. However, with a probate attorney, you may be able to avoid that through the Florida Uniform Transfers to Minors Act.
• If a beneficiary is uncontactable, then summary administration cannot work without their presence. Probate, however, can.
• If a beneficiary refuses to cooperate, formal administration will likely be required, improperly filing summary administration may actually lengthen the probate process.

Is It Too Late to Start Probate?

Do I Need to Appear in Florida To Probate an Estate?

Hire a Probate Attorney in Florida

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1. The testator: the individual who creates the will,
2. The executor: the individual responsible for administering the estate after the death of the testator, and
3. The beneficiaries: the people who will receive some asset(s) from the estate.

Advantages of a Will

• Allows the opportunity to name guardians of children under 21.
• The ability to clarify funeral arrangements.
• Wills are easily amenable, as they do not take effect until after death.
• Allows the opportunity to make donations to institutions or charities.
• Easier to execute.

Disadvantages of a Will:

• Subject to probate (court process that includes having a judge distribute assets and follows the specifications outlined in the will)
• Does not maintain privacy after death.
• Can lead to disputes among beneficiaries.

What Is a Trust?

1. The grantor/settler: the person who creates the trust,
2. The trustee: the entity that holds legal title to the estate, and
3. The beneficiary: the individual who will assume control of the trust in the future.

Advantages of a Trust

• Avoidances of the probate process.
• Continuation of management in the event of illness or disability.
• In some cases, trusts can lessen the burden of taxes.
• Maintains privacy after death.
• Protection from court challenges and disputes.

Disadvantages of a Trust:

• A trust is unable to name guardians or caretakers for children.
• The creation of a trust can be complicated and legally complex.

Will vs. Trust: Key Differences

Effective Date

Probate

Public vs. Private

Contact an Experienced Estate Planning Attorney

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We look forward to working with Jeffrey and taking advantage of everything he brings to the table.

About Jeffrey Stiller

Jeffrey M, Stiller, ESQ is an associate with Battaglia, Ross, Dicus & McQuaid, P.A. specializing in Estate Planning, Probate & Elder Law.

His vast experience and passion for justice and helping people manage complicated financial circumstances have proved consistently pivotal in high-profile cases.

Born and raised in Detroit, Michigan, he attended Eastern Michigan University and later Stetson University College of Law, where he earned top honors in his Federal Income Tax and Legal Writing Seminar courses.

At his last position, he served as the lead attorney servicing Florida and Michigan clients for one of the largest independent finance companies in the nation.

Now, as a member of the Florida Bar, Jeffrey has gained a reputation for developing and maintaining these client relationships throughout Florida. Jeffrey has also worked for the Social Security Administration and as an adjunct professor for Henry Ford Community College.

In addition to his roles in Estate Planning, Probate & Elder Law, Jeffrey is respected for his practice in:

Trusts, Wills, Powers of Attorney, Living Wills and Business Entity Formation.

He has drafted and reviewed hundreds of estate plans involving Revocable Trusts, Irrevocable Trusts, Special

Needs Trusts, Wills, Durable Powers of Attorney, Restatements of Trust, Certifications of Trusts,

Trust Amendments, Deeds, and LLC documents. While also consulting and advising clients regarding estate planning, asset protection, and Medicaid planning. He has also established hundreds of corporations and limited liability companies.

His experience in attending local and national networking events with third-party brokers and financial institutions to develop business relationships and generate income makes him a highly trusted and successful part of our firm.

Jeffrey offers 30-minute complimentary consultations for first-time clients and makes house and hospital calls upon request.

Educational Background & Training

Jeffrey has over a decade of experience in the areas of Estate Planning, Probate & Elder Law. Jeffrey has been a member of The Florida Bar since May 2012 and the State Bar of Michigan since 2013.

Jeffrey earned a Juris Doctor (the highest education available in the legal profession) with the highest grade awards in Federal Income Tax, Legal Writing Seminar, Contracts I and Contracts II at Stetson University College of Law in Florida. Before that, he earned a Bachelor of Science, Criminal Justice degree at Eastern Michigan University.

After leaving college, he quickly worked hard to get hands-on experience in the areas of law and finance in Florida – moving from an intern at Aegon Financial Services in St. Petersburg to a Law Clerk at the offices of Darrin T. Mish in Tampa. He later returned to his native Michigan, shining as a Document Review Attorney while reviewing thousands of documents for relevant and privileged materials related to antitrust and

residential mortgage-backed security disputes. He then displayed his expertise and speaking skills as an Adjunct Professor at Henry Ford Community College in Michigan.

This was followed by gaining crucial experience as a Claims Representative at the Social Security Administration assisting thousands of individuals to apply and receive Social Security retirement, Disability, and SSI benefits, walking them through the appeals process if their benefits had been terminated, suspended, or claims had previously been denied. He later became an Associate Attorney at The Lawmaster Law Firm in Michigan. Here he utilized his passion and expertise to manage all phases of medical mergers & acquisitions and establish hundreds of corporations and limited liability companies throughout Michigan and Florida.

Finally, at his previous position at Brook and Wendt, PLLC, Jeffrey was a Partner and Estate Planning Attorney. Here he consulted and advised clients regarding estate planning, asset protection and Medicaid planning, alongside assistance with all aspects of funding Revocable and Irrevocable Trusts.

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Benefit 1: Dynasty Trusts Remove Assets from the Transfer Tax System

The primary benefit of a Dynasty Trust is that when you transfer assets to trust during your lifetime, the assets become sheltered from the application of future wealth transfer taxes. There are three types of federal wealth transfer tax: the estate tax, the gift tax, and the generation-skipping transfer tax (or “GST tax” for short).

In 2020, the federal estate and gift exemption is approximately $11.6 million per person. This exemption is unified, meaning that taxable gifts during your lifetime reduce the amount of assets you can pass at death estate tax-free. Taxable gifts mean the value of any uncompensated transfers you make in a given calendar year that exceed the gift tax annual exclusion amount, which in 2020 is $15,000.00 per recipient. This means that in 2020, you can give up to $15,000.00 to multiple individuals without paying a gift tax. Let’s look at an example:

Example 1: Mark is an unmarried individual residing in Florida with two adult daughters. In 2020, Mark gives each of his daughters checks in the amount of $15,000.00. Because the gifts do not exceed the gift tax annual exclusion amount of $15,000.00 per recipient, Mark does not have to report the transfers to the IRS, and his $11.6 million estate tax exemption remains intact.

Example 2: Same facts as above, except that in 2020, Mark gives his daughters checks in the amount of $20,000.00 each. Because the gifts exceed the gift tax annual exclusion, Mark must report the gifts to the IRS on a federal gift tax return (IRS Form 709), and Mark’s $11.6 million estate tax exemption will be reduced by $10,000.00 (the amount the gifts exceed the gift tax annual exclusion per recipient). Mark will not be required to pay a gift tax unless and until his $11.6 million exemption has been consumed by taxable gifts during his lifetime. In 2020, the estate and gift tax rate is 40 percent.

The imposition of the GST tax is in addition to the estate and gift tax. In 2020, the amount of the GST tax exemption is the same as the estate and gift tax exemption (approximately $11.6 million). The GST tax is triggered by transfers to a “skip person” (typically a grandchild or more remote descendant) that exceed the transferor’s available GST tax exemption. The GST tax rate also is 40 percent. For example:

Example 3: Mark dies in 2020 with an estate valued at $20 million, which exceeds his estate tax exemption of $11.6 million by approximately $8 million. Mark’s revocable trust devises his entire trust estate to separate spendthrift trusts for each of his four grandchildren ($5 million per grandchild). In addition to an estate tax liability of approximately $3,200,000.00, Mark’s grandchildren’s inheritance will be reduced by an additional $3,200,000.00 in GST tax. Thus, in this example, the grandchildren’s trusts will be funded with $13,600,000.00 of the original $20,000,000.00 trust value.

What could Mark have done differently to avoid more than $6 million of estate and GST taxes? Frankly, a lot of things. But for purposes of this article, we will focus on using Dynasty Trusts to reduce wealth transfer tax:

• First, Mark could have established and funded a Dynasty Trust for each of his grandchildren during his lifetime, instead of waiting until his demise when his net worth likely had peaked. Ideally, he would have done this before his net worth had accumulated beyond his available exemptions.
• Second, Mark would have started utilizing his gift tax annual exclusion to fund each of the Dynasty Trusts with at least $15,000.00 of assets per year to reduce the value of his estate in a tax-free manner.
• Third, Mark could have utilized his estate and gift tax exemption to make larger asset transfers to the Dynasty Trusts, thereby removing the value of the assets and any future appreciation from his overall estate, again without paying any wealth transfer tax.
• Lastly, Mark could have included a formula clause in his revocable trust to devise additional assets to the grandchildren’s Dynasty Trusts at death, but only to the extent of his remaining GST tax exemption, with the balance of the assets either passing to Dynasty Trusts for his daughters, or possibly to charity or a private foundation in order to generate an estate tax charitable deduction to offset the estate liability otherwise due to the IRS.

Once the assets are transferred to the Dynasty Trust, they become sheltered from the application of future wealth transfer taxes, meaning the assets will continue to appreciate for many generations to come free of estate and GST taxes. The Trustee of the Dynasty Trust is empowered to use the trust funds to pay for the health care, education, maintenance and support of the beneficiaries. The Trustee also can be authorized to use funds to pay for travel and residential and vacation properties, all for the use, enjoyment and happiness of the beneficiaries.

Benefit 2: Dynasty Trusts Provide Asset Protection for your Beneficiaries

To the extent a beneficiary of the Dynasty Trust would like to purchase a home or a vacation residence, the Trustee can use the trust funds to purchase these assets on behalf of the beneficiary. In other words, the Trustee, not the beneficiary, will own these investments for the use and enjoyment of the beneficiaries. The Dynasty Trust will contain a provision prohibiting the Trustee from distributing assets to or for the benefit of a beneficiary’s creditors. This type of provision is known as a “spendthrift clause.” Because the Trustee – and not the beneficiary – controls the trust investments, and because the Dynasty Trust contains a valid spendthrift clause, a beneficiary’s creditors cannot reach trust assets to satisfy a claim or judgment against the beneficiary.

Even responsible beneficiaries who are financially savvy could be involved in an automobile accident or divorce which otherwise would expose his or her inheritance but for the Dynasty Trust. Additionally, even the best physicians and attorneys are exposed to potential malpractice claims by virtue of their occupations. Therefore, a Dynasty Trust with a valid spendthrift clause is one of the strongest asset protection vehicles available to protect your beneficiaries’ inheritance from potential creditor exposure.

Benefit 3: Dynasty Trusts Are Flexible

Dynasty Trusts can be prepared in a way that allows them to adapt and react to future changes in the law and even the unique personality traits, talents and limitations of beneficiaries who do not exist yet but who will be born in the future. There also are several flexibility features to consider during your lifetime. For example, it is possible to structure the Dynasty Trust as a “grantor trust” for income tax purposes, so that even though you have transferred ownership of the assets for wealth transfer tax purposes, you still are considered the owner of the assets for income tax purposes. Why do this? Because it allows you to pay tax on any income generated by trust assets during your lifetime, thus allowing the assets to appreciate and compound much like a Roth IRA. The Dynasty Trust can be designed to turn off grantor trust status at such point you no longer wish to pay the income tax liability. If grantor trust status is turned off, then the trust becomes responsible for the income tax liability. Although irrevocable trusts can be subject to high income tax rates, this can be minimized by making distributions to trust beneficiaries who may be in much lower income tax brackets.

Grantor trust status also can be useful to maximize how assets are transferred to the Dynasty Trust. For example, instead of only using gifting, you also can “sell” assets to your Dynasty Trust during your lifetime by means of an installment sale. Because the transfer is a sale and not a gift, no gift tax will be due, and your estate tax exemption will not be reduced. Additionally, because you are considered both the owner of the assets being transferred (the seller) and the owner of the Dynasty Trust (the buyer) for income purposes, there is no capital gain due on the sale (essentially you are selling the assets to yourself). The only requirement is that the installment sale must include a minimal interest rate, which is documented by a promissory note between you and the Trustee of the Dynasty Trust. This technique allows you to transfer high-yield assets to the Dynasty Trust during your lifetime, thereby removing future appreciation from your estate, without having to pay wealth transfer tax or otherwise reduce your available exemptions.

Dynasty Trusts can be layered into your existing estate plan quite easily. If your estate includes stock in a family or closely-held business, using Dynasty Trusts, combined with tax-free annual gifting and low interest installment sales, can significantly reduce or even eliminate the wealth transfer tax your beneficiaries otherwise would have to pay upon your demise. The Dynasty Trust will shelter the trust assets from wealth transfer taxes for up to 360 years and provide your beneficiaries with significant asset protection for their lifetimes, thereby preserving your legacy for generations to come.

Choosing whether to have a Will vs. a Trust as the cornerstone of your estate plan, you should consider whether any of the factors noted above apply to you. While it is always appropriate for the estate planning attorney to make a recommendation, even a strong recommendation, one way or the other, the attorney’s main job is to provide you with the information required to make the best decision based on your unique estate planning goals and budget.

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What Does It Mean to “Fund” the Trust, and Why Is It So Important?

• Real Property – In Florida, attorneys refer to real estate as “real property.” This is probably the easiest type of asset to coordinate with your Revocable Trust, because generally all it takes is a quitclaim deed. However, the deed needs to be prepared correctly and recorded in the official records in the county where the property is located. If you are transferring your Florida homestead (i.e., your primary residence) to your Revocable Trust, then it is recommended that both the quitclaim deed and the trust document contain special verbiage reserving your homestead rights under the Florida Constitution; this ensures that the property appraiser does not disturb your existing homestead exemption and save-our-homes cap benefits when the deed to trust is recorded.

• Tangible Personal Property – Your estate planning attorney should prepare an assignment transferring your tangible personal property to your Revocable Trust. Examples of tangible personal property (“TPP”) include motor vehicles, boats and personal watercraft, household goods, appliances, furniture and furnishings, pictures, silverware, china, glass, books, clothing, and jewelry. Following your demise, your Successor Trustee can utilize the assignment of TPP, along with a copy of the trust document and your death certificate, to transfer your motor vehicles and marine vessels at the DMV without the need for probate court or other court order.
• Business Interests – Transferring business interests to your Revocable Trust can be accomplished with a relatively simple assignment prepared by your estate planning attorney. However, if your stock or membership units have transfer restrictions, then your attorney should assist you by obtaining permission from the company’s leadership to allow the assignment to the Revocable Trust. This is easy to do and seems to work with every company upon request.

• Regular Bank Accounts – When it comes to regular bank accounts, such as checking, savings and money market accounts, you have two options: make your Revocable Trust the owner of the account or the pay-on-death (“POD”) beneficiary of the account. Depending on the internal rules of your financial institution, making the Trust the owner (‘Plan A”) may be simple or complicated. If your bank fits the latter description, then “Plan B” is to make the Trust the POD beneficiary, which is typically just a matter of updating your beneficiary paperwork at the bank.

• Taxable Brokerage Accounts – Non-retirement investment accounts containing stocks, bonds, mutual funds and ETFs are also relatively easy to coordinate with your Revocable Trust. Once you execute your Revocable Trust, your estate planning attorney should send instructions that all taxable brokerage accounts should be re-titled into the name of the Trust. After this happens, the Trust is considered the owner of the account and thus avoids probate when you die (which is the whole point of your Revocable Trust in the first place). Additionally, if you become incapacitated, your “Successor Trustee” named in the trust document will have quick and relatively seamless access to the account assets and can communicate with your financial advisor freely on your behalf. All of the income tax attributes of the investment account will continue to flow through to you on your personal income tax return (IRS Form 1040).

• Tax-Deferred Accounts – Accounts that are “qualified” (by the IRS) or otherwise tax-deferred are treated differently by the IRS. You cannot make your Revocable Trust the owner of these accounts (by law), because they must be owned by an individual. Common examples of tax-deferred accounts include retirement accounts such as IRAs, 401(k) accounts, and 403(b) accounts. There are special steps that must be followed to properly coordinate these types of accounts with a Revocable Trust. If your beneficiaries are minors (under age 18 in Florida), inexperienced or bad with money, or suffer from an addiction issue, then it may be worth the extra effort to coordinate your tax-deferred accounts with your Revocable Trust. However, after the passage of the SECURE Act, for most clients it now makes more sense to name individual beneficiaries on their IRAs and 401(k)s. This is because most non-spouse beneficiaries are now required to withdraw the account assets over a mandatory 10-year period. If your beneficiaries are well-adjusted adults, this is a simpler option versus making the account payable to the Trust as an intermediary.

• Roth IRAs – Similar to Traditional IRAs, Roth IRAs can be made payable to a Revocable Trust provided certain tax requirements are met by including specific verbiage in the trust document. As with IRAs, the pros and cons of naming the Revocable Trust vs. naming individual beneficiaries should be discussed with your estate planning attorney.

• Life Insurance – It is simple to make your Revocable Trust the beneficiary of your life insurance policy. When you die, the insurance company will pay the death proceeds to your Successor Trustee, which can provide your Trustee with great flexibility and liquidity to pay any income or estate taxes that are due, property taxes and insurance, and generally to have cash available to meet the needs of your beneficiaries.

What Happens If an Asset Is Inadvertently Left out of Your Revocable Trust?

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Revocable Trusts Avoid Probate

Most of my clients want to avoid probate for the following reasons:

• The Personal Representative (or “PR” for short, also known as the “Executor”) in a probate proceeding must wait for the court to grant “Letters of Administration” in order to access estate assets, whereas the Successor Trustee named in a Revocable Trust can access trust assets immediately without court supervision or interference. Thus there is virtually no time delay in a trust scenario, whereas a probate proceeding typically takes anywhere from nine months to a year or more.

• In probate proceedings, the PR is required to notify “reasonably ascertainable” creditors and publish a legal “Notice to Creditors” in a newspaper, thereby providing an open forum for potential creditors to make claims against the estate. On the other hand, the Trustee of a Revocable Trust has no affirmative duty to notify creditors regarding the nature and value of trust assets. A creditor seeking to access trust assets would need to file a separate lawsuit in order to subpoena this information. In short, the Trustee of a Revocable Trust has much more leverage in dealing and negotiating with potential creditors after the person who created the Revocable Trust dies.

• Both probate and trust administration involve fees and costs. In probate administration, the fees tend to be higher. This is because Florida law provides that certain percentage fees charged by the PR and his or her attorney are presumed to be reasonable. For example, the PR and his or her attorney each can charge a 3% commission on the first $1 million of probate assets, and then 2.5% commission on the next several million, with the percentage fee gradually decreasing as probate asset values increase. For example, a $2 million probate estate would entitle the PR to a $55,000 commission, as well as the attorney for the PR a $55,000 commission = $110,000.00+ in fees, not to mention court costs. This example is illustrated as follows:

Parties to the Trust

A Trust always has at least three parties:

Power to Modify and Revoke

Income Tax Effect of Revocable Trust

Choosing a Successor Trustee

Structuring Your Beneficiaries’ Inheritance

Funding the Trust

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A Trustee is a fiduciary who oversees assets held in trust for the benefit of one or more beneficiaries. A “fiduciary” is a person or organization that acts on behalf of another person to manage assets. Fiduciaries are bound by ethical duties, including the duties of good faith and loyalty. Here are the main qualities to consider in selecting a Trustee:

1.) A Trustee Should Be Organized and Detail-Oriented

Serving as Trustee involves overseeing trust investments, communicating regularly with beneficiaries, providing detailed accountings showing how trust funds have been allocated and spent, filing tax returns, and exercising discretion when a beneficiary requests a distribution that is permissible (but not necessarily mandated by the terms of the trust). Thus it is imperative that the Trustee has impeccable recordkeeping and organizational skills.

2.) A Trustee Should Be Honest and Loyal

A fundamental duty of the Trustee is that he or she must administer the trust solely in the interests of the beneficiaries. Importantly, the Trustee must be adept at identifying potential conflicts of interest and avoid the same at all costs. Choose a Trustee who is above all else, honest and transparent.

3.) A Trustee Should Be Financially Stable

The ideal Trustee is, at minimum, financially literate, but ideally, financially savvy. Never choose someone as Trustee who has a messy financial history or creditor issues, which could jeopardize his or her ability to administer the trust prudently and avoid conflicts of interest.

4.) A Trustee Should Be Emotionally Stable

The ideal Trustee is emotionally stable, reliable, and composed. Often, particularly with respect to beneficiaries who have addiction or spendthrift issues, the Trustee will encounter backlash if a beneficiary’s request for funds is denied (or approved but with restrictions the beneficiary does not like). The Trustee should be capable of standing up against difficult personalities while at the same time remaining calm and professional under pressure.

5.) A Trustee Should Be Emotionally Intelligent

Going one step further, a Trustee also should be emotionally intelligent. Emotional intelligence or “EQ” is the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically.

6.) A Trustee Should Remain Impartial

If a trust has two or more beneficiaries, the Trustee has a duty to act impartially in investing, managing, and distributing trust property. In other words, the Trustee is not allowed to play favorites. This is especially important to consider when nominating a family member to serve as Trustee for other family members.

7.) A Trustee Should Be Available

Naming an individual who has all of the qualities described in this list as Trustee will not do any good if the individual is not available to serve in the role. For example, I’ve heard clients say, “My son is a successful stockbroker on Wall Street; he would be the perfect Trustee.” Maybe, but maybe not – depending on whether he has the time and availability to serve as Trustee in the first place. Similarly, I’ve heard, “My daughter is an incredibly intelligent physician; she would be the perfect Trustee.” In reality, she is probably overwhelmed with running her practice; also, intelligence in one area, such as medicine, does not necessarily translate to the emotional intelligence and financial savvy required to serve as an effective Trustee.

8.) A Trustee Should Be Willing to Seek Help When Needed

An individual Trustee should not be expected to fly solo; rather, the ideal Trustee is able to identify personal strengths and weaknesses and seek help when needed. For example, it is common for Trustees to employ “helpers,” such as attorneys, CPAs, accountants, and investment advisors, to guide them in fulfilling their fiduciary duties. Thus you should choose a Trustee who is not afraid to seek the expertise of professionals when appropriate.

For some clients, choosing an individual family member to serve as Trustee may offer advantages, particularly when the family member is familiar with family dynamics and values, has experience in law and finance, and may be willing to serve as Trustee for a discounted rate. On the other hand, choosing one family member as Trustee over another can enhance family discord and the perception of favoritism, particularly among siblings. In such a case, it may be more appropriate to choose a corporate fiduciary, such as a bank or trust company, to serve as Trustee. For example, a corporate fiduciary may be an ideal solution in a blended family situation, when there is known acrimony among beneficiaries, when the trust is expected to last for many generations, or when the estate contains complex assets, such as a closely held business.

A frequent initial objection to naming a corporate fiduciary as Trustee is the expense involved. Yes, it’s true that corporate fiduciaries are entitled to be paid for serving as Trustee, but so is Uncle Tony. Whereas the corporate fiduciary is experienced and heavily regulated, Uncle Tony likely is neither. Ultimately, if you are considering using a corporate fiduciary as Trustee, it is important to review the company’s fee schedule and find out if there is a minimum financial requirement. For example, many corporate fiduciaries require $1 million in assets under management to serve as Trustee.

In some cases, I recommend a combination approach. For example, if there is a family member who has an affinity or special way of dealing with an otherwise difficult beneficiary, and the family member is honest and loyal, but not necessarily financially savvy, consider naming the family member to serve as Co-Trustee with a corporate fiduciary. The individual Co-Trustee will manage the expectations and emotional volatility of the beneficiary and communicate the beneficiary’s needs to the corporate Co-Trustee, while the corporate Co-Trustee will ensure that investments are allocated properly and legal notices, accountings, and tax returns are filed on time. This combination approach can be a win-win for all involved.

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