Get Real About Property Law: Travels through Real Estate Law by Tom Brodersen, Esq.
As the weather cools, and our hotels and restaurants begin to fill, many of our northern friends return to enjoy this sunny piece of heaven. Those who have been spoiled for several seasons find the allure of Florida too much too resist, and the vacation becomes a permanent one. Sound familiar?
I have been asked many times by new residents (often retirees) whether they need to update their existing estate plans (which usually consist of wills, trusts, powers of attorney, etc.). My answer is always a definite “YES!” Florida laws impact these instruments dramatically, and can thwart plans you originally intended.
For example, let’s say a married couple created a Husband and Wife trust (aka A-B trust) in another state but after moving to Florida, they file for homestead exemption on their new home. Florida law will trump the intended transfer of the home into an A-B trust and instead pass the property according to Florida law. This may negate plans to pass the property to children from a prior marriage – landing family members in exactly the kind of conflict and expensive litigation you sought to prevent. This can be avoided by amending the trust, revising the deed or using a postnuptial agreement.
Florida law on wills differs from other states. Florida will not recognize a handwritten will, even if it was valid in the state in which it was signed, if it doesn’t have all of the formalities required here. There are also strict rules about who may serve as a personal representative, which may disallow someone nominated in an out-of-state will.
Powers of Attorney in Florida are very specific, due to recent changes in our laws. General, catch-all powers of attorney drafted inAs the weather cools, and our hotels and restaurants begin to fill, many of our northern friends return to enjoy this sunny piece of heaven. Those who have been spoiled for several seasons find the allure of Florida too much too resist, and the vacation becomes a permanent one. Sound familiar?
I have been asked many times by new residents (often retirees) whether they need to update their existing estate plans (which usually consist of wills, trusts, powers of attorney, etc.). My answer is always a definite “YES!” Florida laws impact these instruments dramatically, and can thwart plans you originally intended.
For example, let’s say a married couple created a Husband and Wife trust (aka A-B trust) in another state but after moving to Florida, they file for homestead exemption on their new home. Florida law will trump the intended transfer of the home into an A-B trust and instead pass the property according to Florida law. This may negate plans to pass the property to children from a prior marriage – landing family members in exactly the kind of conflict and expensive litigation you sought to prevent. This can be avoided by amending the trust, revising the deed or using a postnuptial agreement.
Florida law on wills differs from other states. Florida will not recognize a handwritten will, even if it was valid in the state in which it was signed, if it doesn’t have all of the formalities required here. There are also strict rules about who may serve as a personal representative, which may disallow someone nominated in an out-of-state will.
Powers of Attorney in Florida are very specific, due to recent changes in our laws. General, catch-all powers of attorney drafted in other states may not be recognized by financial institutions, real estate attorneys conducting closings or the courts.
Florida also allows an excellent estate planning devise often called a “Lady bird deed” or an “enhanced life estate deed.” When correctly drafted, this deed will completely avoid expensive, lengthy probate proceedings. For example, if a home worth $300,000 is probated in Florida, the attorney’s fees alone will be $9,000. An experienced attorney will usually draft a lady bird deed for around $500.
This is by no means an exhaustive list. Do you make New Years’ resolutions? This year make one that will greatly benefit your family. Have your estate plan reviewed by an experienced attorney.other states may not be recognized by financial institutions, real estate attorneys conducting closings or the courts.
Florida also allows an excellent estate planning devise often called a “Lady bird deed” or an “enhanced life estate deed.” When correctly drafted, this deed will completely avoid expensive, lengthy probate proceedings. For example, if a home worth $300,000 is probated in Florida, the attorney’s fees alone will be $9,000. An experienced attorney will usually draft a lady bird deed for around $500.
This is by no means an exhaustive list. Do you make New Years’ resolutions? This year make one that will greatly benefit your family. Have your estate plan reviewed by an experienced attorney.