Frequently Asked Questions Florida Wills Real Estate Trusts Guardianships Mortgages Florida Wills Who needs a last will and testament?
Anybody who has real or personal property in his or her name should have a legal will. It is important to obtain a will within the state in which you reside. Therefore, if you are living in Florida, then you should have a Florida will.
What happens if I die without a legal will and I own property in my name?
The property will be distributed to individuals specified in the Florida Statutes for intestate estates. This COULD result in your property being distributed to someone unknown to you.
If I put everything in joint names with my spouse, does this avoid probate?
Yes. But this may not be wise. Individuals should discuss their situation with their attorney and then a proper decision can be made as to the best method to follow to accomplish each individual&faq.htm#39;s wishes as to the distribution of his or her estate.
Does a will have to be probated?
If you die with real or personal property in your name alone then your Will has to be probated. It is important to use an Attorney who understands probate laws within your state. As a Florida Attorney, I am especially familiar with Florida probate law and can file the necessary Florida probate forms for you.
How long does probate take to complete?
A non-taxable estate can be completed within four to five months.
Does an individual have to wait until the completion of probate to receive any property due them under a legal will?
Some assets have to be held in order to pay expenses and fees but partial distribution is normally made before the termination of probate.
Does a legal will avoid inheritance taxes?
A properly drawn will can minimize taxes but cannot avoid taxes. Each individual&faq.htm#39;s case will need to be examined to accomplish his or her goal.
What is a Living Will?
A Living Will is a written declaration authorizing the termination of life support or other medical procedures in the event you reach a point where said services are deemed to be of no value to sustaining your life or the quality of life that you desire. The exact text of the Living Will is set forth in the Florida Statutes.
Real Estate In a residential real estate transaction, who pays the cost of closing?
The party who pays each closing cost is determined by the contract between the parties. Closing costs can be part of the negotiations of the terms of the contract.
Which party pays for the title insurance for a closing?
Under the Florida Bar-Approved Contract, the SELLER normally pays for the title insurance.
Why do I need Title Insurance?
Title Insurance provides you with an insurance policy guaranteeing that you have a good and marketable title to your real property. If a title defect or dispute arises during your ownership of the property, the Title Insurance Co. will pay for any loss incurred due to a title defect, not excluded from their coverage, up to the face amount of your policy.
Will the party paying for the title insurance be entitled to a reissue credit?
This is a question that has to be determined on each closing.
Will the buyer be entitled to a simultaneous issue for lender insurance?
If the real estate and mortgage closing are closed at the same time, the lender&faq.htm#39;s title insurance will be issued at a simultaneous rate.
How are taxes and other yearly charges handled at a closing?
Again this is determined by each contract. Under the Florida Bar-Approved Contract, the items are normally prorated to the date of closing.
Are Florida Real Property taxes paid as of the date of closing?
Florida Real Property taxes are paid in arrears and normally they are prorated as of the date of closing. Usually a Tax Proration Agreement is used since we will not know what the exact tax amount will be until after the tax bill is issued around November 1 each year.
Who prepares the closing statements and other documents for a closing?
The closing attorney is responsible for preparing all documents for the closing and issuing the title insurance. He or she also should resolve any title problems. The closing attorney will also get inspection reports, termite reports, make certain there is insurance coverage, and order and examine the survey. He will also normally preside at the closing.
Trusts Does a trust avoid probate?
Yes, if properly drawn.
Does a trust avoid inheritance taxes?
No, however a trust properly drawn may minimize these taxes.
Is a trust more expensive than a Will?
Generally a trust is more expensive to create than a Will.
Does a trust save time in the distribution of property to beneficiaries of the trust?
Generally distribution is quicker under a trust but new Florida Statutes affect procedures under a trust and this issue should be discussed with your attorney.
Do you have to transfer assets into a trust?
A trust will not control or affect any property that is not transferred into the trust.
If I have a trust do I need a Will?
Not necessarily, however if any of your property is not in the trust then a court proceeding may have to be opened. It is very common to have what is called a Pour Over Will. This leaves property not in the trust to the trust.
Can a trust be amended?
A Revocable trust can be amended. An Irrevocable trust cannot be amended. These two types of trusts should be discussed with your attorney.
Guardianships When do I need a guardianship?
When an individual, through advanced age or by an accident, becomes unable to manage his affairs it may become necessary to have a guardian appointed.
Can you avoid a guardianship?
A guardianship can sometimes be avoided by using a Statutory Durable Power of Attorney.
Mortgages What is a Mortgage Attorney?
A Mortgage Attorney provides legal advice and assistance to clients and acts as a "bridge" or "conduit" in a mortgage transaction between the client and the "wholesale" secondary mortgage market. The Mortgage Attorney represents you, the client, in the home financing loan process and is ethically bound to advise and counsel you, the client, in your best interest. As a Mortgage Attorney, I will provide legal advice and will help you understand the different options and costs regarding: - Loan terms and programs
- Loan rates and expenses
- The mortgage industry and the mortgage process
Is a Mortgage Attorney the same as a Mortgage Broker?
No. A Mortgage Broker or Loan Officer is considered a Retail Distribution Channel and therefore charges "retail" rates for their mortgages. Loan officers do not represent your best interest. They are Independent Contractors and do not have the duty to protect your interest. In addition, different types of loans pay different amounts of commission to the Loan Officer. Unfortunately, many times the advice you receive from the Mortgage Broker is based upon the commission paid to the Broker or Loan Officer and is not always in your best interest.
A Mortgage Attorney acts as a bridge between the borrower and the secondary mortgage market, thereby providing "wholesale" mortgage rates to their clients. Mortgage Attorneys legally represent your best interest in the transaction and are required to put your interest above theirs. Mortgage Attorneys cannot receive any monies from the lender. Their advice is based upon what is in your best interest, not theirs.
What do you mean by a Mortgage Retail Distribution Channel?
A Mortgage Retail Distribution Channel is usually a Mortgage Broker or a Loan Officer at a Bank. They act as the "bridge" between the Secondary Mortgage Market (wholesale market) and the client.
How are Loan Officers and Mortgage Brokers compensated?
Traditional Loan Officers and Mortgage Brokers (Retail Distribution Channel) do not represent the Borrower. For this reason, they may not always fully disclose, in understandable terms, the options and expenses associated with the loan process. In fact, most Loan Officers are encouraged to increase the price of the loan products they sell by setting up a commission structure that allows the Loan Officer to receive a portion of every dollar collected from the Borrower. Most borrowers are unaware that Loan Officers or Mortgage Brokers earn extra fees by "selling" you a loan at an interest rate higher than necessary. Theses extra fees are called the Yield Spread Premium and average between $1,000 and $2,500 per mortgage transaction. Most borrowers are unaware of these payments because the lender receives them after the closing.
How are Mortgage Attorneys compensated?
Since Mortgage Attorneys legally represent their Clients, the advice they give concerning the loan terms, programs, loan rates, and expenses is untainted by any monetary gains received for recommending a particular loan product or loan rate. As a mortgage Attorney, I charge a one-time fee for handling the loan arrangements, which is normally less than the up front fee charged by a Retail Mortgage Broker. I do not change the loan rates in any way. I receive no recurring fees from your loan payment. Therefore, you are assured of receiving the lowest possible loan rate available to fit your needs.
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