Getting married is a joyous occasion that marks the beginning of a new chapter in life. However, marriage also brings significant legal and financial changes that may directly affect your estate plan. Whether it’s your first marriage or a subsequent one, reviewing and updating your estate plan is crucial to ensure your wishes are honored and your loved ones are protected.

1. Florida’s Elective Share Law

Florida law provides that a surviving spouse is entitled to an elective share of the deceased spouse’s estate. This is typically 30% of the estate, including both probate and some non-probate assets. If your current estate plan excludes your spouse, they may still be entitled to this share, overriding your existing directives.

To address this:

- Update your will and trust documents to explicitly account for your new spouse, if desired.

- Consider executing a prenuptial or postnuptial agreement to waive the elective share if you wish to limit your spouse’s entitlement.

2. Joint Ownership of Assets

Marriage often results in the joint ownership of assets such as bank accounts, real estate, and vehicles. Jointly owned assets typically pass to the surviving owner upon death, bypassing probate. This can unintentionally disrupt your overall estate planning goals if not properly coordinated with your will or trust.

What to do:

- Review how assets are titled and ensure they align with your estate plan.

- Decide whether joint ownership or another method, such as a trust, is the best option for asset distribution.

3. Updating Beneficiary Designations

Marriage does not automatically update beneficiary designations on retirement accounts, life insurance policies, or payable-on-death accounts. Failing to update these can result in unintended beneficiaries, such as an ex-spouse or other relatives, inheriting these assets.

Action steps:

- Update beneficiary designations to include your spouse or other desired individuals.

- Review all accounts and policies to ensure consistency with your estate plan.

4. Homestead Property Considerations

Florida’s homestead laws grant specific protections and restrictions on your primary residence. If you own a home and get married, your spouse gains certain rights to the property, even if it is solely in your name. For example, a surviving spouse has the right to either a life estate in the homestead or a 50% share of the property as tenants in common.

To address this:

- Consider executing a valid nuptial agreement if you wish to waive spousal rights to the homestead.

- Discuss transferring the home into a trust to better control its distribution.

5. Considerations for Blended Families

If you or your spouse have children from previous relationships, marriage can complicate estate planning. Florida’s intestacy laws—which govern how assets are distributed without a will—may unintentionally prioritize your spouse over your children, or vice versa.

To avoid disputes:

- Update your will and trust to clearly outline your intentions for all children and stepchildren.

- Use tools like qualified terminable interest property (QTIP) trusts to provide for your spouse while preserving assets for your children.

6. Health Care and Financial Decisions

Marriage often impacts who will make decisions for you in case of incapacity. If you previously named someone else, such as a parent or sibling, as your health care surrogate or durable power of attorney, you may want to update these documents to reflect your spouse’s new role in your life.

Steps to take:

- Update your advance directives, including your health care surrogate designation and living will.

- Update your durable power of attorney to grant your spouse the necessary authority to manage your affairs.

7. Tax Implications

Marriage can also bring tax benefits that affect your estate plan. Florida does not have a state estate tax, but federal estate tax considerations may change based on your marital status. Married couples can take advantage of the unlimited marital deduction, allowing the transfer of assets between spouses without incurring federal estate taxes.

What to consider:

- Work with an experienced estate planning attorney to optimize your estate for tax purposes.

- Consider using portability to transfer any unused portion of the federal estate tax exemption to the surviving spouse.

Final Thoughts

Getting married is an exciting time, but it’s also an important moment to reassess your estate plan. Florida’s laws and the unique dynamics of your new marriage can have significant implications for your assets and loved ones. By proactively updating your documents and making thoughtful decisions, you can ensure your estate plan reflects your new life together.

If you’ve recently tied the knot or are planning to, contact our office to schedule a consultation. We’re experienced in helping individuals and families navigate the complexities of estate planning in Florida and would be happy to assist you in creating a plan tailored to your needs. https://scovills.com/?p=2300

What Happened?

After actor Heath Ledger passed away in 2008, his will, created years prior, left his estate to his parents and sisters. However, he hadn’t updated his will after the birth of his daughter, Matilda. This oversight led to disputes over whether his daughter should inherit his assets, with his family ultimately deciding to include her in the inheritance voluntarily.

What Went Wrong?

- Outdated Will: Ledger’s will didn’t account for his daughter, as it had been created before her birth.

- Family Disputes: Initially, the will favored his parents and siblings, creating potential tension over his daughter’s right to inherit.

- Unaddressed Guardianship Provisions: The lack of updated provisions for his child’s guardianship and inheritance left gaps in his estate plan.

How It Could Have Been Prevented

- Regular Will Updates: Updating his will after his daughter’s birth would have ensured she was included.

- Clear Provisions for Minors: Detailed instructions for inheritance and guardianship would have prevented potential disputes.

- Communicating Wishes with Family: Discussing his estate plans with family could have preemptively addressed any concerns.

Lessons for Your Estate Planning

Ledger’s case highlights the importance of updating your estate plan after major life events, especially when children are involved.

Citations

- The Guardian – "Heath Ledger's Estate and His Daughter's Inheritance"https://www.theguardian.com/ledger-estate-daughter

- Forbes – "Importance of Updating Your Will"https://www.forbes.com/sites/estateplanning/importance-updating-will

- Investopedia – "Estate Planning for Young Families"https://www.investopedia.com/articles/estate-planning-young-families https://scovills.com/?p=2122

When it comes to estate planning in Florida, one of the most common questions people ask is whether they should create a will or a trust. Both documents are important tools that serve different purposes, and understanding the differences between them can help you make the right choice for your estate plan.

What Is a Will?

A will is a legal document that outlines how your assets will be distributed after your death. It also allows you to name a personal representative (executor) to manage your estate and, if you have minor children, appoint a guardian for them. In Florida, a will must meet specific legal requirements, such as being signed by the testator (the person creating the will) in the presence of two witnesses.

What Is a Trust?

A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of beneficiaries. A revocable living trust, the most common type in Florida, allows you to maintain control over your assets during your lifetime and designate how they will be distributed after your death. Unlike a will, a trust can help you avoid probate and may provide other benefits, such as privacy and protection from court intervention in the event of incapacity.

Key Differences Between Wills and Trusts in Florida

- Probate: One of the most significant differences between a will and a trust is how they affect probate. A will must go through Florida’s probate process, which can be time-consuming and costly. A trust, on the other hand, allows assets to be transferred directly to beneficiaries without probate, providing a faster and more efficient way to distribute assets.

- Privacy: In Florida, probate records are public, meaning that the details of your will and estate can be accessed by anyone. A trust allows your estate to remain private because it avoids probate. This can be especially important for individuals who want to keep their financial affairs confidential.

- Incapacity Planning: A will only takes effect after you die, while a trust can be used to manage your assets during your lifetime. If you become incapacitated, your successor trustee can step in to manage the trust assets without the need for court intervention, which is often required with a will-based estate plan.

- Cost and Complexity: Creating a will is typically simpler and less expensive than setting up a trust. However, the probate process can lead to higher costs and delays for your heirs. While a trust may be more complex and costly to create, it can save your beneficiaries time and money by avoiding probate and court involvement.

- Control Over Distribution: A trust provides more flexibility and control over how and when your assets are distributed to beneficiaries. For example, you can specify that certain beneficiaries receive funds at specific ages or for certain purposes, such as education. A will simply distributes assets in a lump sum, which may not be ideal in every situation.

Do You Need Both a Will and a Trust?

In Florida, many people use both a will and a trust as part of their estate plan. This approach allows them to cover all their bases. A "pour-over" will can be used to transfer any assets not included in the trust at the time of your death into the trust, ensuring that all your assets are distributed according to your wishes.

Choosing the Right Option for Your Florida Estate Plan

Whether you choose a will, a trust, or both depends on your specific needs and goals. If avoiding probate, maintaining privacy, and planning for incapacity are priorities for you, a trust may be the better option. However, if your estate is relatively simple and probate is not a concern, a will might be sufficient.

Consulting with an experienced Florida estate planning attorney can help you decide which option is best for your situation. They can guide you through the process and ensure that your estate plan meets all legal requirements and protects your legacy. https://scovills.com/?p=2082

Florida’s property tax laws are designed to maintain fairness and consistency while allowing certain protections for property owners. When property ownership changes hands, the property's taxable value may be reassessed, potentially leading to an increase in property taxes. However, not all transfers result in reassessment. Knowing which transfers trigger a reassessment and which are exempt is crucial for estate planning and real estate transactions.

When Property is Reassessed

Under Florida law, property is typically reassessed to its current market value when there is a "change of ownership or control." This often results in a higher taxable value, as the property is no longer protected by the previous owner’s tax caps under the Save Our Homes (SOH) Amendment or other assessment limitations (Fla. Const. art. VII, § 4(d)). Common scenarios where property reassessment occurs include:

- Sale of Property

- When a property is sold to a new owner, it is reassessed based on the purchase price or current market value (Fla. Stat. § 193.155(3)).

- Transfer of Ownership Outside the Family

- Transfers to unrelated individuals, including friends or business partners, generally trigger reassessment (Fla. Stat. § 193.155(3)).

- Transfer of Ownership Resulting in a New Controlling Interest

- If a property is owned by a corporation, partnership, or trust, a change in controlling interest (e.g., transferring more than 50% of the ownership) can trigger reassessment (Fla. Stat. § 193.155(4)).

- Adding or Removing a Non-Exempt Co-Owner

- Adding someone who is not an exempt family member or removing the original owner could result in reassessment.

Transfers Exempt from Reassessment

Certain property transfers are exempt from reassessment under Florida law, often to protect families and preserve property tax caps. These exemptions include:

- Transfer Between Spouses

- Transfers of property between spouses, whether during marriage or as part of divorce proceedings, are exempt from reassessment (Fla. Stat. § 193.155(3)(a)(2)).

- Transfer to a Revocable Living Trust

- When the owner transfers property into their revocable living trust for estate planning purposes, reassessment is not triggered as long as the grantor remains the beneficiary of the trust (Fla. Stat. § 193.155(8)).

- Inheritance by Immediate Family Members

- Transfers of property to a surviving spouse, children, or certain other family members after the original owner’s death are often exempt. This includes property transferred via a will or trust, provided the new owner qualifies for homestead exemptions (Fla. Stat. § 193.155(3)(a)(3)).

- Homestead Property Transfers Within the Family

- Transfers to family members (e.g., children, grandchildren) that maintain the property as a homestead may avoid reassessment if the new owner applies for and qualifies for homestead exemption (Fla. Const. art. VII, § 4(c)).

- Adding a Joint Tenant with Rights of Survivorship (JTWROS)

- Adding a joint tenant who is a family member and retains the homestead exemption does not trigger reassessment (Fla. Stat. § 193.155(3)(a)(1)).

- Transfer Due to Death of a Joint Owner

- When one joint tenant dies, and the property passes to the surviving joint tenant, reassessment is typically avoided (Fla. Stat. § 193.155(3)(a)(1)).

Best Practices for Avoiding Unnecessary Reassessment

- Understand the Homestead Rules

- Homestead property receives special protections under Florida law, but transferring ownership improperly could jeopardize these benefits.

- Plan with a Qualified Estate Planning Attorney

- Structuring ownership through trusts, life estates, or other legal tools can help avoid reassessment and ensure a seamless transition for your heirs.

- Use Lady Bird Deeds (Enhanced Life Estate Deeds)

- A Lady Bird Deed allows the original owner to retain control during their lifetime while transferring ownership automatically upon death, avoiding reassessment and probate (Fla. Stat. § 193.155(3)(a)(4)).

Conclusion

Understanding Florida's property tax reassessment rules is essential for property owners, especially when planning to transfer ownership. While certain transfers will result in reassessment and higher taxes, others are exempt, particularly those designed to keep property within a family or to preserve homestead protections.

To navigate these complex rules and minimize tax burdens, consult with an experienced estate planning attorney. At Bart Scovill, PLC, we focus on helping clients structure their estate plans to protect their assets and take full advantage of Florida's property tax exemptions. Contact us today to learn how we can assist you.

For more information here is a Link to the Florida Department of Revenue website for official property tax information: Florida Department of Revenue - Property Tax https://scovills.com/?p=2294