Remley Law, S.C.

Before you file: 5 smart financial moves to protect your assets in a Wisconsin divorce

2026-03-24T05:17:18Z

A divorce encompasses the loss of a joint life plan, financial partnerships, and the complex emotions that arise during the transition. Because Wisconsin is a community property state, the court operates under the legal presumption that all assets and income acquired by either spouse during the marriage belong to both parties equally. If you are considering filing, the strategic steps you take today will determine your financial security tomorrow. In a state where the "50/50" rule is the baseline, precision in documenting your separate estate is your best defense.

1. Document your individual property

While most things are split 50/50, Wisconsin law generally excludes inheritances and gifts from third parties, if you can prove they have not been mixed. Gather statements, wills, or gift letters that show these assets were yours alone. If you have a house you owned before the marriage, find the original deed and records of any improvements made with non-marital funds.

2. Stop the "commingling" immediately

In Wisconsin, if you deposit your "individual" inheritance into a joint bank account, it becomes marital property in the eyes of the law. This is called commingling. Open a separate bank account in your name only (at a different bank) for any funds that are clearly yours. Do not use this account to pay for shared household expenses, or you risk "contaminating" the asset.

3. Take a "financial snapshot"

Once the divorce is filed, assets have a mysterious way of "disappearing" or losing value. Download the last three years of tax returns, bank statements, and 401(k) balances. Take photos of valuable art, jewelry, or equipment. Do not forget to document digital assets like cryptocurrency wallets or e-commerce store balances.

4. Separate your credit identity

In a community property state, you are not just sharing assets but also debts. If your spouse goes on a shopping spree after you decide to divorce but before you file, you could be on the hook for half that debt. Get a copy of your credit report to see every account with your name on it. If possible, close joint credit cards or freeze them to prevent new charges. Establishing your own credit line now is vital for your post-divorce life.

5. Review your beneficiaries

Under Wisconsin Act 127, trust and estate laws are strict. If something happens to you during the divorce process, your spouse might still be the primary beneficiary on your life insurance or POD (Payable on Death) accounts. While you may not be able to change everything while the divorce is pending (due to "temporary restraining orders"), you should consult your lawyer about updating your Will and Power of Attorney to reflect your current intentions. In Wisconsin, the 50/50 rule is the starting point, not the end. An experienced attorney can help you create a plan that safeguards your future.

Be Careful With Beneficiary Designations

2025-01-06T05:45:47Z

It has become a common practice to list beneficiaries on assets as a means of avoiding probate and to avoid the necessity of setting up a revocable living trust to hold or collect your assets. Having accounts payable on death (POD) or transferable on death (TOD) is a common suggestion for probate avoidance. Although this works in most cases, it can cause problems if those beneficiary designations are not kept up to date. A death or divorce in the family, as to the designated beneficiary, can cause problems on how the account is paid out after death. Beneficiary designations control to whom that property is distributed even though the terms of an individual’s will or revocable trust direct otherwise. Although most institutions accept beneficiary designations, such as life insurance companies, pension plans, brokerage accounts and bank accounts, sometimes these institutions have their own set forms for directing the pay out to beneficiaries. Some have their own directions of what happens should a named beneficiary predecease you. It pays if you are going to use a beneficiary designation to check out with the institution what happens, what is the default, if a beneficiary were to predecease you. Do you want those assets then paid to the beneficiary’s heirs or lineal descendants, or do you want the beneficiary designation to terminate and the asset to be controlled by your general estate, that is, by your will or trust. It is best to seek the help of an estate planning professional to review with you your beneficiary designations if you decide to have beneficiary designations on some or all of your assets. This should be part of a comprehensive estate plan where how you own, hold and designate payment and transfer of assets after your death is fully reviewed. Submitted by: Attorney Wyon F. Wiegratz Remley Law, S.C.

Five Requirements of a Valid Will

2024-07-18T06:22:50Z

By Attorney Wyon F. Wiegratz

Competency/Free Will: You must be an adult (18 or older) and have the mental capacity, that is, be of a sound mind to understand what you are doing. You must not be under the influence of drugs or the influence of another person. If you have psychological issues, it must be signed during a period when you have a lucid moment.
Typewritten: A handwritten will if not valid except under some very limited circumstances.
Date and Signature: Your will, to be acceptable, must be signed by you before two witnesses. For your will to be immediately accepted in some states, it needs to be signed and witnessed a second time before a notary.
Witnesses: Two disinterested witnesses are required. If your will is going to be taken out of state, it is advisable that it be further signed, witnessed and notarized in front of a notary.
Absence of Markings on Original Will: It is recommended you have only one original signed will. Any changes to a will should be made by a formal codicil signed in the same manner as your will. Any markings on the will may be interpreted as your invalidation of the will.

A will is a direction to the probate court on how you want the property that is in your name to be settled after your death, unless you provided other directions such as joint ownership or a proper beneficiary designation as to that asset. You should still have a will even if you have all your assets in a trust or all your assets jointly owned or in beneficiary form. Your original will should be put away in safekeeping, but photocopies of the will can be made and might serve to replace your will if your will is destroyed by accident, such as by theft or fire. It is recommended that you hire an attorney to draft your will and advise on how to plan your estate, including considering the need for such things as powers of attorney to handle your health care and finances if you become incapacitated.

Change Of Residency From Wisconsin To Florida

2023-08-07T09:50:07Z

By Attorney Wyon F. Wiegratz The test for change of residency is principally a tax test by your old home state. Usually, your new state, such as Florida, wouldn’t raise questions concerning residency unless there is a homestead tax question. The burden of proof is on the individual to not only show non-residency in their old home state but also prove residency in Florida. Most states presume that an individual is a resident for tax purposes if he or she spends over one-half of his or her time in that state during the past calendar year. Yet, this is not always conclusive. Wisconsin does not require you live outside of Wisconsin for over half of the year to change residency nor does the state of Florida require you live there for over half of the year to be considered a resident. Yet it is best if you can show to have been in Florida as a resident for some substantial period each year. State taxing authorities require that you show your intent to change residency. That intent is demonstrated by the actions you take. An important action is the sale of your old home in Wisconsin and purchase or rental of a home in Florida. Yet, selling your home in Wisconsin is not necessarily required if you take other steps, such as registering to vote and taking out a driver’s license in Florida. Wisconsin requires notification of the change of residency by completing a special form submitted with your final Wisconsin income tax return. This Wisconsin tax questionnaire outlines the many ways in which you can demonstrate your intent to change residency. Florida has become more aggressive in challenging a claim of residency if you seek to claim homestead real estate tax benefits for property you own and live in in Florida. Florida tax assessors can go back up to ten years in challenging homestead credits and can recoup the tax benefits along with penalties and interest if you claimed residency and homestead in Florida while still obtained resident tax benefits in Wisconsin. It is best to get legal help from an attorney familiar with WI and FL law if you are planning for a residency change to Florida. Disclaimer: The above content is intended to provide general information regarding the subject matter covered. The provision of this information is not intended by the author as legal advice. If you need or desire legal advice, you should consult an attorney for advice specific to your situation. Further, laws change over time so the information should be verified before relying on it.

Titling Florida Real Estate

2023-08-07T09:50:13Z

By Attorney Wyon F. Wiegratz As a licensed attorney in both Florida (FL) and Wisconsin (WI), I am often asked to help other attorneys and help our snowbird clients with how they should hold FL real estate. This often involves retitling property, especially when those individuals want to avoid the expenses and delays of going through probate in Florida if they want to keep their property titled just in their own name. This typically involves preparing a new deed for them, placing title in their joint names, or in the case of couples in Florida this is called tenancy by the entirety. In this way the survivor inherits immediately. For others, it means titling property in the name of the trustees of a trust which becomes irrevocable on their death. Also, this can mean making the property transferable to a family member at death by what is called a Lady Bird deed, similar to a WI transfer on death deed. FL also allows life estate and remainder deeds to guarantee the automatic transfer at death. Unfortunately, FL has no standard deed form, but state statute prescribes what is necessary for a valid deed. Execution of a deed is more formal in FL, where it can’t be merely by authentication by an attorney, but rather needs two witnesses and a notary to have a valid recordable deed. Recording a deed involves the cost of recording fees, indexing fees and a document stamp fee. If property is to be held in trust, the trust must first identify the trustees to hold title. If the property is to be an individual’s homestead in FL, then special attention has to be paid to how homestead real estate held and disposed of by the trust. In conclusion, if you plan to transfer FL real estate, it is important that you speak with a licensed FL attorney so that it is done properly. Disclaimer: The above content is intended to provide general information regarding the subject matter covered. The provision of this information is not intended by the author as legal advice. If you need or desire legal advice, you should consult an attorney for advice specific to your situation. Further, laws change over time so the information should be verified before relying on it.

Florida “Lady Bird” Deed

2023-08-07T09:50:17Z

By Attorney Wyon F. Wiegratz As a licensed attorney in both Florida (FL) and Wisconsin (WI), I am often asked if FL has a transfer on death (TOD) deed similar to that in Wisconsin. Unfortunately, FL has yet to adopt a statute allowing for a simple transfer on death deed. A transfer on death deed is where you can name a future beneficiary to receive title to your property without having to give up present ownership of the property and without having your beneficiary have to go through probate after your death to confirm their right to the property. Yet, FL does have what they call a “Lady Bird” deed that works similar to a TOD deed. The Lady Bird deed takes its name from Lady Bird Johnson, President Lyndon Johnson’s wife who was a contingent owner of their real estate in Texas. A Lady Bird deed is a life estate and a remainder deed with the life tenant, the grantor of the deed, retaining the right during their lifetime to revoke that designation. The Lady Bird deed is executed with the same formality as any other deed in FL. That is, the grantor needs to have two witnesses and a notary. It is subject to the same recording fees, but only requires a minimum document stamp fee since there is no consideration for this gift of a revocable remainder interest. A parent can list several children as the remainder owners on his or her death and they would all would become common tenants in the property unless a different arrangement is expressed, such as joint ownership with survivorship. On death of the grantor (life tenant), the remainder owners confirm full ownership merely by recording some documents. These typically include an approved death certificate, an affidavit of survivorship and an affidavit regarding taxes. Since the grantor has retained a life interest until their death, the property receives a step up in its tax basis to its then fair market value. Thus the property can be sold by the remainder owners with little or no capital gains tax consequence at that point. If you plan to transfer FL real estate and want to avoid probate it is important that you seek the advice of a licensed FL attorney. Disclaimer: The above content is intended to provide general information regarding the subject matter covered. The provision of this information is not intended by the author as legal advice. If you need or desire legal advice, you should consult an attorney for advice specific to your situation. Further, laws change over time so the information should be verified before relying on it.

Estate Tax Update: Initial Thoughts

2023-08-07T09:50:21Z

The Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017, and became effective January 1, 2018 (the “Act”). While most of the Act is made up of provisions that change individual and business income taxes, there were some significant changes to the Estate Tax laws.

We are still awaiting guidance from the IRS with respect to some of the provisions; however, this post will inform you with respect to some of the major changes in the Estate Tax laws and my initial thoughts on some planning opportunities. Note that as these new laws are analyzed and examined, it is anticipated that more planning opportunities will develop and I will update this blog as to such opportunities once further developed. The main purpose of this post is to advise you of the changes made and to give you a starting point when considering your own individual planning.

The Estate Tax is the tax that is assessed against an individual’s total estate and all assets included in such estate when that individual passes away. The Estate Tax rate of 40% did not change. However, the most significant change was the Estate Tax exemption amount doubled. Under the old law, the exemption amount was set to increase to $5,490,000 per individual and $11,180,000 per married couple in 2018; instead, the Act increased this exemption amount to $11,180,000 per individual and $22,360,000 for married couples. Therefore, if an individual passes away with total estate assets valued at less than that exemption amount (including all lifetime gifts), no Estate Tax would apply on such individual’s estate.

This significant increase in the Estate Tax exemption amount presents a number of planning considerations:

If an individual already used part or all of their Estate Tax exemption as part of their planning under the old law, that individual now has at least an additional $5,000,000 in exemption that they could now use in their planning.
Whether or not an individual has used any of their Estate Tax exemption amount already, much consideration should be given as to whether to use some or all of the exemption now. This is because one major piece of this new Act is that it sunsets in year 2026. This means that if no action is taken by Congress before 2026, the Estate Tax exemption amount will go back down to the old law exemption amounts (which would be approximately $6,000,000 per individual in 2026 with inflation adjustments). Thus, it is important to at least consider taking advantage of this increased exemption now. However, the question then becomes, if this new increased exemption amount does sunset in 2026, what will Congress do about individuals who have used more than that new lower exemption amount (i.e., the $6,000,000 exemption)? Will they be grandfathered in and those assets above that amount still not be subject to Estate Tax? Will the amount above the new lower exemption amount be brought back into their estate when they pass away and thus be subject to Estate Tax? These are some of the questions we are still looking to the IRS for guidance on.
This new Act retains the right of the surviving spouse to “port” over the deceased spouse’s unused exemption amount. What this means is if one spouse passes away without using their $11,180,000 exemption, the surviving spouse can elect to “port” over that $11,180,000 exemption in order to retain the benefit of that exemption when that surviving spouse later passes away. This can be extremely beneficial and must be considered as part of every estate plan and when a spouse passes away. Our thought is that even if the exemption amount sunsets in 2026, that this “ported” amount would still be allowed (if a spouse passed away between 2018 and 2026), even at the higher exemption amount. However, there has not been any IRS guidance on this yet. Furthermore, portability should also be used in conjunction with an exemption trust to allow the surviving spouse maximum flexibility.
All of the planning tools that were at our exposure before are still available; the impact of such planning may have changed though. Very briefly and generally, the benefits and risks of Estate Tax planning at this conjuncture are as follows:

Benefits of Estate Tax Planning

Using the Estate Tax exemption while it is available at this increased amount and before it goes away (possibly in 2026 or even sooner if other political changes occur) can be a substantial benefit to transfer more out of your estate tax-free.
Any appreciation on such assets after being transferred will also be out of your estate, providing even more Estate Tax savings.
Not only does it lower the Estate Tax at death, it can also lower your income taxes if you are no longer receiving the income from those assets after you gift them away.

Risks of Estate Tax Planning

We don’t know what will happen when the new Act sunsets in 2026, if that happens. Will the IRS conclude that any amount in excess of the lower exemption amount comes back into your estate? If that happens, will your estate have enough left to even pay the Estate Tax due?
If planning is done, what exemption does it use if you give away less than the future sunset exemption amount (which we believe will be approximately $6,000,000)? For example, if you give away $4,000,000 when the exemption amount is the current $11,180,000 and then later the exemption goes down to $6,000,000, do you only have $2,000,000 of exemption left ($6,000,000 new exemption minus $4,000,000 gifted) or $6,000,000 ($11,180,000 old exemption minus $4,000,000 gifted, but since over the current $6,000,000, capped at $6,000,000)?
For any assets in your estate at your passing, such assets receive a step-up in basis, which means your beneficiaries will not pay capital gain tax on any appreciation up until the date of death. However, for any assets transferred out of your estate, your beneficiaries lose the benefit of the step-up in basis on such assets (i.e., if the asset is sold, the beneficiary will pay capital gain tax on all appreciation). Thus, this loss of the step-up in basis and the assessment of the capital gains tax needs to be weighed against the Estate Tax.
What does the future hold? What will the value of the assets in your estate be when you pass away? Markets can change. What will the Estate Tax law in effect be when you pass away? Political turbulence and changes have this Estate Tax law in a constant flux.

My hope is that this information is helpful and gives you some ideas to consider.

How to Deed Florida Property

2023-08-07T09:50:29Z

By: Wyon F. Wiegratz As a licensed attorney in both Florida (FL) & Wisconsin (WI), I am often retained by other WI law firms to assist with estate planning for their clients who have property in FL, are actual FL residents, or are planning to be residents in FL. When preparing a FL deed, assistance is often needed from an attorney who is licensed to practice in FL. Because:There is no standard deed form in FL.There is no standard deed form in FL. Execution of a deed requires witnesses and a notary.

The document stamp calculations vary for certain counties.
The document stamps apply to not just the recording of a deed but also to any change of status as to liability on a mortgage.
There is no longer a state approved form for submitting the document stamps.
Recording fees (indexing fees) vary.
How trust property is titled differs from the way most in WI would write a deed.
If the property is or is planned to be the owner’s homestead then the trust deed may not be effective to avoid probate unless added estate planning is done.
If homestead, then the trust and the deed should have language allowing for homestead rights in order to get the favorable tax rates.
Clients often need to be coached on how to claim homestead rights after a trust deed is recorded.
Finally, the FL Bar is very aggressive in going after the unauthorized practice of law in FL.

In conclusion, if you plan to transfer Florida real estate it’s important that you speak with a FL licensed attorney. Disclaimer: The above content is intended to provide general information regarding the subject matter covered. The provision of this information is not intended by the author as legal advice. If you need or desire legal advice, you should consult an attorney for advice specific to your situation. Further, laws change over time so the information should be verified before relying on it.

2017 Estate And Gift Tax Update – A Quick Snapshot

2023-08-07T09:50:33Z

Every year I like to post a quick Estate and Gift Tax update for you to reference throughout the year. This way, if you’re anything like me, you won’t find yourself constantly “Googling” different estate and gift tax thresholds at the beginning of the year for a quick refresher on the updated thresholds. The purpose of this post is to provide a snapshot of some of the most common 2017 estate and gift tax thresholds, tax rates, exemptions, elections, etc. Feel free to use this how you see fit. Additionally, if you have any other commonly used 2017 estate and/or gift tax updates that I may have left off the list, please feel free to leave them in the comments. Federal Gift Tax

Lifetime Exemption: $5,490,000
Annual Exclusion: $14,000
Gift-Splitting: Yes, if married and spouse consents (i.e., annual exclusion is $28,000 for married couples)
Rate: 40% on gifts above the lifetime exemption (plus the annual exclusion)

Federal Generation-Skipping Transfer Tax

Exemption: $5,490,000
Portability: No
Rate: 40% on generation-skipping transfers above the exemption

Federal Estate Tax

Exemption: $5,490,000 (exemption is decreased by lifetime gifts)
Portability: Yes (i.e., surviving spouse may elect to use deceased spouse’s unused exemption, in effect, giving married couples an exemption of $10,980,000)
Rate: 40% on the value of the estate above the exemption amount

Federal Income Tax for Trusts and Estates

Tax Brackets: see chart below
Tax Rates: see chart below
Net Investment Income Tax: A 3.8% surcharge tax on net investment income applies to trusts and estates that are above the $12,500 income threshold (i.e., the marginal tax rate on net investment income above that threshold is then 43.4%)
Distributable Net Income: Net income that is distributed to beneficiaries of a trust or estate is taxed at the beneficiaries’ level and not at the trust or estate’s level

Chart: Federal Income Taxation of Trusts and Estates
If Taxable Income is:	The Tax is:
Not over $2,550	15% of the taxable income
Over $2,550 but not over $6,000	$382.50 plus 25% of the excess over $2,550
Over $6,000 but not over $9,150	$1,245.00 plus 28% of the excess over $6,000
Over $9,150 but not over $12,500	$2,127.00 plus 33% of the excess over $9,150
Over $12,500	$3,232.50 plus 39.6% of the excess over $12,500

State Taxes Each State has its own set of rules when it comes to estate tax, gift tax, inheritance tax, and income taxation of trusts and estates. Be sure to check with a professional in your State for an update. For a complete summary of all 2017 Federal tax-related inflation adjustments see Rev. Proc. 2016-55, available here: https://www.irs.gov/pub/irs-drop/rp-16-55.pdf. I hope this helps! © 2016 Crummey Estate Plan.

When Do Powers Of Attorney Start And End?

2023-08-07T09:50:37Z

One common estate planning misconception is when Powers of Attorney start and end. A Power of Attorney is a tool used to grant authority to someone to act on your behalf in case they need to. Powers of Attorney can start or be effective either immediately or springing.

Health care Powers of Attorney, which allows someone to make health care decisions on your behalf, are effective only if you are not able to make decisions for yourself, whether that is because of a physical ailment, such as being unconscious, or a mental illness.

A financial Power of Attorney on the other hand can be effective immediately or springing. A financial Power of Attorney allows someone to make financial decisions on your behalf. If effective immediately, that means the moment it is signed the person can start making decisions on your behalf. If it is springing, the person can only make decisions on your behalf if you are unable to, again such as if you are unconscious or have a mental illness.

Whether to make it effective immediately or springing is an important decision. Most people choose to make if effective springing because they only want someone to make decisions on their behalf if they are unable to; however, some people do decide to have it effective immediately so their agent can make decisions right then and there and going forward. A lot of times this may be in the case of a person who is elderly or travels a lot.

When the Power of Attorney ends is another misconception. The Power of Attorney ends immediately upon death. That means your agent no longer has authority to make financial decisions on your behalf, whether that means writing checks, paying bills, or getting funds out of your account. As soon as you pass away, that authority transfers to the personal representative or executor under your Will or the trustee under your trust. If not planned properly, that could mean that the personal representative or executor may not have access to any of the decedent’s funds until a probate process is opened and the court grants that personal representative or executor with the proper authority to access those funds to pay your bills and final expenses, meaning weeks if not months of delay. Thus, proper planning can solve all of these issues.

If you have any questions regarding your Powers of Attorney or you do not have any please contact me.