The Importance of Updating Your Estate Planning Documents When Moving to Florida

By: Jeffrey Lynne February 1, 2024 1:32 am

Time to read: 5 Minutes

Moving to Florida is a dream for many, with its beautiful beaches, warm climate, and vibrant communities. Florida attracts not only retirees and snowbirds, but also young professionals and new families. Amidst the excitement of a new chapter, it’s crucial not to overlook the necessity of updating your estate planning documents as safeguarding your assets and ensuring your wishes are met requires a careful review and modification of your estate plan to meet state law.

1. Florida-Specific Laws

One of the key reasons to update your estate planning documents when moving to Florida is the state’s unique laws and regulations. Each state has its own set of rules governing wills, trusts, and probate, and Florida is no exception. While Florida does recognize a validly executed will from another state, many times, it will still require future proof that it was indeed an original will which can be a large expense on your estate. Additionally, the individuals named as personal representative may not actually be allowed to serve in their roles as you hoped unless they comply with state laws. Lastly, by updating your documents you are able to prove that you have indeed established Florida residency and can avoid a potential dispute with your previous state when they assess income tax.

2. Marital Property Laws

If you moved from a state with community property laws, its imperative that you review your documents as Florida is not a community property state. This can affect your ownership designation and tax obligations when the property passes to your heirs. Appropriate marital property clauses must be added to your documents to ensure that your beneficiaries are receiving the full benefits of the state’s taxation.

3. Homestead Laws

Florida’s homestead laws are among the most strict and protective in the country. Understanding and incorporating these laws into your estate plan is essential, especially if you have purchased a primary residence in the state. Homestead laws provide significant benefits, such as property tax exemptions and creditor protection for your primary residence. Failing to update your estate plan to reflect these advantages could result in missed opportunities to preserve your assets for your heirs.

4. No State Income Tax, But…:

While Florida is renowned for not imposing state income tax, this doesn’t mean your estate is entirely tax-free. The federal estate tax still applies, and careful planning is necessary to minimize its impact. By updating your estate planning documents, you can explore strategies to reduce your estate’s tax liability, ensuring that more of your hard-earned assets pass on to your loved ones.

5. Healthcare Surrogates and Power of Attorney

Florida has specific requirements for these roles, and updating your documents to comply with state laws ensures that your designated individuals have the authority to make medical and financial decisions on your behalf in case of incapacity.

By updating your documents to align with the Sunshine State’s legal framework, you can avoid potential conflicts and ensure that your estate is administered smoothly.

Please contact BMUL+Z’s attorneys if you would like to discuss options:

Aesha Tripathi, Esq.

Thomas Zeichman, Esq.

This blog is made available by Beighley, Myrick, Udell, Lynne + Zeichman, P.A. (“BMUL+Z” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Beighley, Myrick, Udell, Lynne + Zeichman, P.A., its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship.

Attribution: Florida by Nick Youngson CC BY-SA 3.0 Pix4free