When someone says, “I’m just going to put my daughter on my bank account,” that statement can mean three very different things.

In Florida, a person can be added as a co-owner, an authorized signer, or a beneficiary (POD) — and each option carries very different legal consequences.

If you get this wrong, you can accidentally create creditor exposure, gift issues, family disputes, or even defeat your estate plan entirely. Let’s break it down clearly.

1. Co-Owner of the Account (Joint Owner)

When you add someone as a co-owner, you are giving them ownership rights to the account.

In Florida, most joint accounts are titled as joint tenants with rights of survivorship. That means:

- Both owners have access to all funds.

- Either owner can withdraw the entire balance.

- At death, the surviving owner automatically receives the account.

- The account avoids probate.

What Many People Don’t Realize

- The co-owner’s creditors may be able to reach the account.

- The funds may become part of the co-owner’s divorce proceedings.

- You may be making a present gift of part of the account.

- If the co-owner dies first, their creditors or heirs may complicate matters.

- This arrangement overrides your will.

This is not merely “helping with bills.” This is giving away ownership.

That may be appropriate in some situations — but it should be intentional.

2. Authorized Signer (Convenience Signer)

An authorized signer (sometimes called a convenience signer) is not an owner.

They can:

- Write checks

- Make deposits

- Assist with transactions

But they do not own the account.

Key Differences from a Co-Owner

- No survivorship rights.

- No ownership interest.

- Creditors of the signer generally cannot reach the funds.

- The account remains part of the owner’s estate at death.

This is often what people actually mean when they say they want someone “on” their account — someone to help manage finances during life.

However, this arrangement does not avoid probate.

If probate avoidance is your goal, this option alone won’t accomplish it.

3. Beneficiary (Payable-on-Death / POD)

A Payable-on-Death (POD) designation names someone to receive the account when you die.

During your lifetime:

- The beneficiary has no access.

- They have no ownership rights.

- They cannot interfere with the account.

At death:

- The funds pass directly to the named beneficiary.

- The account avoids probate.

Important Limitations

- It does not help with incapacity.

- It overrides what your will says.

- It may conflict with your trust planning if not coordinated properly.

A POD designation is simple — but simplicity can create unintended consequences if it is not aligned with the rest of your estate plan.

Comparing the Three Options

FeatureCo-OwnerAuthorized SignerPOD BeneficiaryHas ownership rights now?YesNoNoCan access funds during life?YesYesNoAvoids probate?YesNoYesSubject to their creditors?PotentiallyGenerally NoNo (during your life)Helps during incapacity?YesYesNo

These are very different tools — even though banks often treat them as minor paperwork changes.

The Bigger Issue: Intent

Most problems arise because:

- A parent wants help paying bills.

- A banker suggests adding a joint owner.

- The long-term legal consequences are never discussed.

In many cases, a properly drafted Durable Power of Attorney is a cleaner, safer solution during lifetime — without giving away ownership or creating creditor exposure.

The right answer depends on your goals:

- Avoid probate?

- Plan for incapacity?

- Protect from creditors?

- Maintain control?

There is no one-size-fits-all solution.

Final Thoughts

Putting someone “on” your bank account is not a small administrative decision. It is a legal decision with real consequences.

If you have questions about how your accounts are titled — or whether they are coordinated with your overall estate plan — contact Bart Scovill, PLC to review your options before making changes at the bank.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. https://scovills.com/?p=3467

Estate planning isn’t just about what happens after death. For many people, the most important planning happens during life, especially in the event of incapacity.

Most advice assumes there’s a spouse, adult child, or close friend ready to step in. But many Floridians don’t have that safety net. They may be single, widowed, estranged, child-free, or simply unwilling to place that level of responsibility on anyone they know.

When that’s the case, healthcare decision-making becomes the most difficult—and most dangerous—gap to leave unaddressed.

Why Healthcare Decisions Are the Hardest to Solve

Financial roles can be outsourced. Medical judgment cannot—at least not easily.

A healthcare surrogate must:

- Speak with doctors in real time

- Make judgment calls under stress

- Weigh quality of life against medical intervention

- Advocate when no one else is in the room

Without a named surrogate:

- Florida’s statutory priority list applies

- Distant or estranged relatives may gain control

- Or the court may become involved

Once court involvement begins, your voice fades quickly.

Strategy 1: Separate Medical Authority from Emotional Burden

One reason people struggle to name a healthcare surrogate is emotional weight.

The mistake is assuming the surrogate must care deeply about you to act responsibly. In reality, what matters more is whether they can:

- Follow instructions

- Communicate clearly

- Stay calm under pressure

- Resist outside influence

For some clients, a competent but emotionally neutral person—even if not especially close—performs better than someone overwhelmed by guilt or fear.

Strategy 2: Use Extreme Clarity to Replace Personal Knowledge

When personal familiarity is missing, written clarity becomes the substitute.

This means going beyond a checkbox living will.

Effective planning often includes:

- Detailed written explanations of treatment preferences

- Clear statements about pain management, cognition, and independence

- Guidance on when continued treatment no longer serves your goals

- Instructions about consultation with specialists or ethics committees

The goal is to remove guesswork so the surrogate is executing decisions—not inventing them.

Strategy 3: Name Primary and Backup Decision-Makers Early

Indecision often leads to procrastination, which leads to court involvement.

A better approach is:

- Name the best available option now

- Layer backups

- Accept that perfection is unrealistic

Healthcare documents can be updated. Guardianships are much harder to undo.

Choosing someone imperfect today is often safer than choosing no one at all.

Strategy 4: Consider Professional Decision-Makers—With Limits

Professional fiduciaries work well for finances. Healthcare is different.

Some professional guardians or agencies will serve as healthcare decision-makers, but this approach works only when paired with strong instructions and oversight.

Pros:

- Availability

- Experience with medical systems

- Willingness to make hard calls

Risks:

- Volume-driven decision-making

- Lack of personal advocacy

- Overreliance on institutional norms

When professionals are used, the documents must do more of the work.

Strategy 5: Use Oversight and Accountability Tools

When trust is limited, accountability matters.

Common safeguards include:

- Requiring consultation with a second physician

- Mandating periodic reporting

- Naming a monitor to receive updates

- Authorizing ethics committee review in disputes

These tools don’t replace a surrogate—but they reinforce responsible decision-making.

Strategy 6: Make a Guardian Choice 

Before

 the Court Does

Even the best documents can fail. When they do, guardianship becomes the fallback.

Florida allows you to:

- Nominate a guardian in advance

- Express preferences and disqualifications

- Provide guidance to the court

This doesn’t eliminate risk—but it keeps control in your hands instead of the court’s.

The Real Risk: Silence

The most dangerous estate plan for someone without close family is silence.

When no one is named:

- Decisions default to statutes

- Courts step in

- Costs rise

- Control disappears

Healthcare decisions don’t wait for perfect planning. They arrive suddenly and demand immediate answers.

Final Thoughts

If you don’t have an obvious person to make healthcare decisions, you’re not alone—and you’re not unprepared if you plan intentionally.

The solution isn’t finding the “right” person.

It’s building a system that works even when no one knows you well.

If you have questions about incapacity planning and healthcare decision-making in Florida, contact Bart Scovill, PLC to discuss lifetime-focused strategies designed for your situation.

Disclaimer:

This article is provided for general informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Bart Scovill, PLC. Estate planning laws and procedures vary by jurisdiction and individual circumstances. You should consult a qualified attorney regarding your specific situation before making any legal decisions. https://scovills.com/?p=3464

New Estate Planning Video: Myth, Mistake, or Truth: Adults Don’t Need a Guardian

Myth, Mistake, or Truth: Adults Don’t Need a Guardian

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When a loved one passes away, settling their affairs can feel overwhelming. The probate process in Florida has strict rules and deadlines, so having the right attorney can make a tremendous difference — both emotionally and financially. Here’s what to look for when choosing a probate attorney.

1. Look for Florida Probate Experience

Probate laws and court procedures vary from state to state. You’ll want an attorney who regularly handles Florida probate cases and understands local court practices, especially if property or homestead rights are involved.

Tip: Ask how many probate administrations the attorney handles in a typical year — and whether those are summary, formal, or ancillary estates.

2. Confirm They Handle Your Type of Case

Not every estate is the same. Some involve formal probate (court-supervised), while others qualify for summary administration or even disposition without administration.

Choose an attorney who explains which type applies to your situation and why — not one who gives a one-size-fits-all answer.

3. Evaluate Communication and Responsiveness

Probate can take months. You’ll want someone who:

- Returns calls or emails promptly

- Clearly explains what to expect next

- Keeps you updated on filings and deadlinesYou shouldn’t have to chase your attorney for information.

4. Understand the Fee Structure

In Florida, probate fees are often based on a percentage of the estate value under Florida Statute §733.6171, but many attorneys offer hourly or flat-fee options for smaller estates.

Ask for a written fee agreement that explains how costs are billed and what’s included.

5. Check for Personal Compatibility

This is often overlooked. Probate matters involve sensitive family dynamics and emotional decisions. Choose someone you feel comfortable with — an attorney who listens, answers questions directly, and shows empathy while staying objective.

6. Look for a Local Presence

Each Florida county has its own probate division and local procedural quirks. A Sarasota or Manatee County attorney, for example, will be familiar with local filing systems, judges, and clerks. That local familiarity can save time and stress.

7. Verify Credentials and Standing

You can confirm an attorney’s standing with the Florida Bar at www.floridabar.org. This will show whether the attorney is in good standing and whether there are any disciplinary actions.

8. Ask About Related Services

Probate often overlaps with other issues — such as trust administration, estate tax, or homestead transfers.

An attorney experienced in both probate and estate planning can help minimize future problems for surviving family members.

9. Get a Clear Roadmap

Before hiring, ask the attorney to outline the steps of your probate case and the expected timeline. A good attorney will explain:

- Which documents are needed

- What happens in court

- When distributions can occurThat transparency helps you feel confident in the process.

10. Trust Your Instincts

Finally, if an attorney rushes you, avoids clear answers, or seems too busy, trust your gut. Probate requires both technical knowledge and personal trust.

Conclusion

The right probate attorney will help you navigate Florida’s process efficiently, reduce conflict, and give you peace of mind that your loved one’s estate is handled properly.

If you have questions about selecting or starting a Florida probate, contact Bart Scovill, PLC, where our firm is dedicated to helping families through every step of the probate process with clear communication and local experience.

Disclaimer:

This article is for general informational purposes only and does not constitute legal advice. Every probate matter is different, and reading this content does not create an attorney-client relationship. If you need legal advice regarding a probate matter in Florida, you should consult with a qualified attorney about your specific situation. https://scovills.com/?p=3461

New Estate Planning Video: Myth, Mistake, or Truth: Everyone Should Have a Trust

Myth, Mistake, or Truth: Everyone Should Have a Trust

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Retirement accounts like IRAs and 401(k)s are often among the largest assets in an estate. But when it comes to estate planning, they operate under a very different set of rules compared to other types of property. Many Florida residents want to know whether it makes sense to name a trust as the beneficiary of a retirement account — and if so, how to do it correctly. Here's what you need to know.

Can a Retirement Account Be Held in a Trust?

During your lifetime, retirement accounts cannot be retitled into a trust. They must remain in your individual name to maintain their tax-deferred status. However, you can name a trust as the beneficiary of a retirement account, which allows the trust to receive the proceeds after your death and manage how those funds are distributed to your heirs.

Why Use a Trust for a Retirement Account?

Naming a trust as the beneficiary may be a good strategy when:

1. You Want Control Over How Funds Are Distributed

A trust allows you to set rules, such as:

- Delaying distributions until a beneficiary reaches a certain age

- Requiring that funds be used for education or medical needs

- Preventing an irresponsible heir from receiving a lump sum

2. Your Beneficiary Is a Minor, Has Special Needs, or Faces Creditor Issues

Trusts can be designed to provide lifelong protection for vulnerable beneficiaries. For example, a special needs trust may be appropriate for a disabled child, and a spendthrift clause can protect the account from creditors or divorce.

3. You Want to Preserve Some Tax Deferral

Although the rules have changed (see below), trusts can still help beneficiaries avoid immediate taxation, depending on how the trust is structured.

Understanding the 10-Year Rule (Post-SECURE Act)

Since the SECURE Act of 2019, most non-spouse beneficiaries of retirement accounts must withdraw the entire balance within 10 years of the account owner's death. This includes most trusts as beneficiaries.

However, exceptions apply for “eligible designated beneficiaries”, including:

- Surviving spouses

- Minor children (while they are minors)

- Disabled or chronically ill individuals

- Individuals less than 10 years younger than the decedent

For these beneficiaries, distributions may still be stretched over their life expectancy if the trust is set up properly.

Types of Trusts Commonly Used

Conduit Trust

- Acts as a pass-through: the required minimum distributions (RMDs) from the IRA are immediately passed to the beneficiary.

- Offers some protection while still qualifying for favorable tax treatment.

- Cannot retain IRA funds in the trust.

Accumulation Trust

- Can hold onto distributions, offering more control and protection.

- May result in higher taxes if income is retained by the trust.

- Needs to be carefully drafted to remain a “see-through trust” under IRS rules.

Risks of Naming a Trust as Beneficiary

- Tax Rates: Trusts reach the top federal income tax bracket much faster than individuals.

- Complexity: Trusts must meet specific IRS criteria to qualify as a “see-through” trust.

- Legal Drafting Requirements: A poorly drafted trust can trigger immediate taxation or unintended distributions.

Best Practices for Florida Residents

- Get Professional AdviceRetirement accounts are subject to special tax rules that change frequently. A trust must be drafted to comply with both federal tax law and Florida trust law.

- Use Precise Beneficiary DesignationsIt’s not enough to name “my trust” — the full legal name and date of the trust should be listed.

- Coordinate with Your Entire Estate PlanTrusts can be powerful tools, but they must be coordinated with your will, power of attorney, health care directives, and financial institutions.

Conclusion

Trusts can be an effective way to manage and protect retirement account distributions for your loved ones — but they must be used carefully. The decision to name a trust as a beneficiary should never be made without legal guidance. At Bart Scovill, PLC, we help Florida families design estate plans that are clear, protective, and tax-efficient.

If you’re unsure whether a trust should be the beneficiary of your retirement account, contact us today to schedule a consultation.

Disclaimer: This article is for general informational purposes only and does not constitute legal, financial, or tax advice. Reading this content does not create an attorney-client relationship with Bart Scovill, PLC. You should consult with a qualified professional regarding your specific situation before making any decisions related to estate planning or retirement accounts. https://scovills.com/?p=3410

New Estate Planning Video: Myth, Mistake, or Truth: My Trustee Needs Financial Skills

Myth, Mistake, or Truth: My Trustee Needs Financial Skills

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Attorneys, CPAs, and financial advisors spend their careers protecting the interests of others. Yet many professionals overlook the importance of protecting their own practices. A comprehensive estate plan should do more than manage personal assets—it should also ensure that clients are protected, staff are supported, and the professional’s legacy continues even in the event of incapacity or death.

Why Professional Practices Require Special Planning

Professional practices are governed by strict licensing and ethical rules. In Florida, only licensed professionals may own or operate certain types of firms, and those licenses cannot simply be transferred to a spouse or child. Without proper planning, a practice can be forced to close abruptly, leaving clients unserved and the estate without a way to realize the business’s value.

Key issues commonly include:

- Client obligations: Deadlines, filings, and fiduciary duties continue even after an owner’s death or incapacity.

- Confidentiality: Someone must be authorized to secure and manage client records.

- Compensation: Fees and commissions earned but not collected must be handled properly through the estate.

- Licensing restrictions: Only qualified professionals may manage or wind down the practice.

The Importance of a Successor or Closure Agreement

Every professional should have a written succession or closure plan.For attorneys, this often means designating an Inventory Attorney under Florida Bar Rule 1-3.8(e).For CPAs and financial advisors, it may involve a buy-sell agreement, continuity plan, or successor firm arrangement.

These agreements address essential questions:

- Who will contact and protect clients?

- Who has authority to pay staff and close accounts?

- How will the practice’s value be determined and transferred?

Without these answers, both the estate and clients may face unnecessary disruption and financial loss.

Coordinating the Practice with the Estate Plan

The estate plan and business continuity plan should work together. Steps to consider include:

- Durable Power of Attorney: Authorize a trusted colleague to manage business operations temporarily if needed.

- Revocable Trust: Assign ownership interests to a trust that can contract with a licensed successor or arrange a sale.

- Insurance and Valuation: Maintain funding mechanisms such as key-person or buy-sell coverage to preserve liquidity.

- Client Communication: Prepare a plan for notifying clients and transferring active matters or accounts.

Proper coordination ensures the practice’s financial and professional value is not lost in transition.

Encouraging Cross-Professional Planning

Attorneys, accountants, and financial advisors often share clients who rely on consistent professional guidance. By implementing their own continuity plans, professionals set an example of responsible planning while also protecting mutual clients from unnecessary stress and uncertainty.

Professionals who wish to integrate business succession into their estate plans can benefit from working with an attorney familiar with Florida’s ethical and legal requirements for professional entities.

Disclaimer:This article is provided for general informational purposes only and is not intended as legal, tax, or financial advice. Reading this content does not create an attorney-client relationship. Laws and professional licensing rules vary based on individual circumstances and may change over time. Attorneys, CPAs, financial advisors, and other professionals should consult with qualified legal counsel regarding their specific succession and estate planning needs.

Helpful Links

For Attorneys

- Florida Bar Inventory Attorney Program:https://www.floridabar.org/member/inventory-attorney-program/Explains the Bar’s rules and resources for appointing an inventory attorney under Rule 1-3.8(e).

- Florida Bar Rule 1-3.8(e): Inventory Attorneyshttps://www.floridabar.org/rules/rrtfb/(Scroll to Chapter 1, Rule 1-3.8(e) for the exact rule text.)

- The Law Practice Exchangehttps://www.thelawpracticeexchange.comMarketplace and advisory service for buying, selling, and transitioning law practices.

For CPAs

- Florida Institute of CPAs (FICPA): Practice Continuation & Succession Planninghttps://www.ficpa.org(Search “practice continuation” or “succession” within the site for FICPA’s model agreements and guidance.)

- AICPA: Business Continuation Planning for CPAshttps://us.aicpa.org(Provides national-level templates and checklists for firm continuity.)

For Financial Advisors

- FINRA: Business Continuity Planning Rule (FINRA Rule 4370)https://www.finra.org/rules-guidance/rulebooks/finra-rules/4370Outlines continuity requirements for financial professionals.

- CFP Board: Practice Transition Resourceshttps://www.cfp.net(Resources for certified financial planners managing continuity and client succession.)

General Practice Succession & Continuity

- SBA Business Succession Planning Guide (U.S. Small Business Administration)https://www.sba.gov/business-guide/manage-your-business/transition-plan

- Florida Department of Business & Professional Regulation (DBPR)https://www.myfloridalicense.com(For verifying and transferring professional licenses when ownership changes.) https://scovills.com/?p=3407

New Estate Planning Video: Myth, Mistake, or Truth: I Don’t Need a Living Will Because I Have a DNR

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When someone dies with an ex-spouse still named as the beneficiary on their life insurance policy, families are often shocked by what actually happens. Many assume divorce wipes out the ex-spouse’s rights automatically—but that isn’t always true. In fact, in some situations the ex-spouse still receives the full payout.

Here’s a clear explanation of how this works under Florida law, and what to expect when this situation appears during probate.

Private vs. Employer-Provided Policies: The Key Difference

Before anything else, you must determine what type of policy you’re dealing with. Everything hinges on this.

Private life insurance policies (non-ERISA)

Under Florida Statute § 732.703, if the policy owner divorces after naming their spouse as beneficiary, the law generally treats the ex-spouse as if they predeceased the insured.

Unless one of the following happened:

- The divorce judgment required the ex-spouse to remain beneficiary

- The parties signed an agreement to keep the ex-spouse as beneficiary

- The insured re-designated the ex-spouse after the divorce

If Florida’s statute applies, the insurance company pays the contingent beneficiary.If no contingent is named, the proceeds go to the estate.

Employer-provided or ERISA-governed policies

These follow federal law, not Florida law.And under federal law, the named beneficiary receives the payout—even if they are the ex-spouse.

This is one of the biggest surprises families run into.

Does the Divorce Judgment Mention Life Insurance?

Some marital settlement agreements require one spouse to:

- Maintain life insurance, and/or

- Keep the former spouse as the beneficiary

If the insured later changes the beneficiary, the policy may pay the person currently listed—but the ex-spouse can sue the estate to enforce the agreement. Courts can impose a constructive trust on the proceeds to honor the divorce judgment.

If the divorce judgment contains any language about life insurance, it must be reviewed carefully.

Timeline Matters: Before or After the Divorce

It’s important to determine:

- When the beneficiary designation was made

- Whether the insured updated the designation after the divorce

- Whether the insured remarried

- Whether any backup beneficiaries exist

A fresh designation naming the ex-spouse after the divorce overrides Florida’s revocation statute.

What If You Represent the Ex-Spouse?

Key question:

“Was the policy employer-provided?”

- If ERISA → The ex-spouse likely gets the proceeds.

- If private → The ex may be revoked unless the divorce judgment protects them.

If the divorce required the insured to maintain the ex as beneficiary, they may still have a claim even if not listed.

What If You Represent the New Spouse or Children?

Your first step is the same: determine whether the policy is private or ERISA.

- Private policy → Good chance the ex is voided.

- ERISA policy → The ex is probably still entitled.

- Backup beneficiaries become important if the ex is voided.

- If the proceeds fall into the estate, probate may become more complex.

Conclusion

When an ex-spouse is named as beneficiary on a life insurance policy, Florida law does not give a one-size-fits-all answer. The key questions are:

- Is the policy private or employer-provided?

- Does the divorce judgment address life insurance?

- Was the ex re-designated after the divorce?

If you have questions about a life insurance issue involving a former spouse, or need help navigating how this affects a probate administration, contact Bart Scovill, PLC. We help families throughout Florida understand their rights and obligations during these situations.

Disclaimer:This article is provided for general informational purposes only and is not intended as legal advice. Reading this article does not create an attorney-client relationship. Life insurance beneficiary issues can be highly fact-specific, particularly when divorce, federal law, or prior court orders are involved. You should consult with a qualified attorney regarding your specific situation before taking any action. https://scovills.com/?p=3404

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When it comes to protecting your family and your future, choosing the right estate planning attorney is one of the most important decisions you’ll make. A well-designed estate plan can provide peace of mind, reduce taxes and expenses, and prevent disputes down the road — but only if it’s done correctly. Here’s what to look for when choosing an estate planning attorney in Florida.

1. Look for Experience in Florida Estate Planning

Estate planning laws vary from state to state, and Florida has some unique rules — especially regarding homestead property, elective share, and trust administration. Look for an attorney who focuses on Florida estate planning rather than one who merely offers it as a side service.Ask how long they’ve practiced in this area and whether they routinely prepare wills, trusts, and related documents for Florida residents.

2. Make Sure the Attorney Understands Your Goals

A good estate plan isn’t one-size-fits-all. Your attorney should take time to understand your family dynamics, financial situation, and long-term wishes.During your consultation, notice whether the attorney:

- Listens carefully before offering advice

- Explains options clearly, without legal jargon

- Tailors recommendations to your circumstances

If you feel rushed or confused, keep looking.

3. Ask About Their Process and Fees

Estate planning should be a collaborative and transparent process. Before hiring an attorney, ask about:

- The planning process: How many meetings are involved? Who drafts and reviews the documents?

- Flat fees vs. hourly rates: Many estate planning attorneys offer flat-fee packages that include common documents such as wills, trusts, and powers of attorney.

- Ongoing support: Does the attorney help update your plan after life changes or law updates?

4. Check Communication and Accessibility

You want an attorney who is responsive and approachable. Estate planning often involves sensitive family matters, and you should feel comfortable reaching out with questions.Check how the office handles communication — do they offer phone, email, or text options? Are calls returned promptly? A caring, organized office can make all the difference.

5. Read Reviews and Ask for Referrals

Online reviews and client testimonials can reveal a lot about an attorney’s professionalism and client service. You can also ask trusted friends, financial advisors, or other professionals for referrals.Look for consistent themes — such as clarity, patience, and attention to detail — that signal a trustworthy attorney.

6. Choose Someone You Feel Comfortable With

Estate planning is personal. You’ll be sharing information about your assets, family, and future wishes. The right attorney will make you feel at ease, respected, and confident that your plan reflects your intentions.

Conclusion

A well-chosen estate planning attorney can help you protect your loved ones and avoid unnecessary stress in the future.If you’re ready to start your plan or review an existing one, contact Bart Scovill, PLC for guidance tailored to your family’s needs. Our firm is focused on Florida wills, trusts, and probate and provides friendly, individualized service at fair rates.

Disclaimer:This article is for general informational purposes only and is not intended as legal advice. Reading this article does not create an attorney-client relationship. Estate planning laws vary based on individual circumstances, and you should consult with a qualified Florida attorney regarding your specific situation before taking any action. https://scovills.com/?p=3400

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For years, forming an LLC was the default advice for owning investment property. That advice is no longer as simple as it once was. In Florida, reassessment of property values, higher insurance costs, and increased administrative burdens have made LLC ownership less attractive for many small and mid-size real estate investors.

The good news is this: an LLC is not the only way to manage liability risk. In many cases, traditional tools—used correctly—can provide meaningful protection without triggering reassessment or unnecessary expense.

Why LLCs Are Losing Their Appeal for Rental Property Owners

An LLC can still make sense in the right circumstances, but investors are increasingly running into problems:

- Property tax reassessment risk when property is transferred into or out of an LLC

- Higher insurance premiums for LLC-owned residential property

- Financing issues, including loss of homestead-style protections and less favorable loan terms

- Ongoing costs and compliance, even for a single rental property

For owners of one or two properties, these drawbacks often outweigh the perceived liability benefits.

Alternative #1: Proper Insurance (The First Line of Defense)

Insurance has always been the foundation of liability protection, and it remains the most practical solution for most landlords.

Landlord Insurance

A standard homeowner’s policy is not enough for rental property. A landlord policy typically includes:

- Property coverage

- Liability coverage

- Loss of rental income

Umbrella Liability Policies

An umbrella policy sits on top of your landlord insurance and provides additional coverage—often in $1 million increments—at a relatively modest cost.

Reality check: Many claims never reach personal assets because adequate insurance resolves them long before litigation becomes existential.

Alternative #2: Title Ownership Strategies (Old School, Still Effective)

Sometimes the way property is titled can meaningfully reduce exposure.

Tenancy by the Entirety (Married Couples)

For married couples, holding rental property as tenants by the entirety can protect the property from the creditors of just one spouse.

This protection:

- Exists under Florida law

- Does not require an LLC

- Does not trigger reassessment on its own

It’s not perfect protection, but it’s real protection.

Alternative #3: Revocable Trusts (Limited Liability, Major Control Benefits)

A revocable trust does not provide full liability protection like an LLC—but that’s not the point.

Trust ownership can:

- Avoid probate

- Preserve continuity of management at death or incapacity

- Keep ownership private

- Avoid reassessment that might occur with LLC transfers

When paired with strong insurance, trusts are often a cleaner, more flexible option for long-term ownership and succession planning.

Alternative #4: Segregation Without an LLC

For investors with multiple properties, risk can sometimes be managed by segregation, not entity formation.

Examples include:

- Higher insurance limits on higher-risk properties

- Separate policies for different properties

- Conservative lease drafting and strict maintenance protocols

This approach avoids the domino effect where one poorly structured LLC exposes everything tied to it.

Alternative #5: When an LLC Still Makes Sense

This article is not anti-LLC. It’s anti-automatic-LLC.

An LLC may still be appropriate when:

- The property is commercial or multi-unit

- There are multiple unrelated owners

- The property is already reassessed and insured accordingly

- Significant operational risk exists

The key is intentional use—not reflexive use.

The Bigger Picture: Liability Protection Is a System, Not a Document

Too many investors believe one document solves every problem. That mindset causes more harm than good.

True liability protection comes from:

- Adequate insurance

- Thoughtful titling

- Good maintenance and management practices

- Proper estate planning integration

When these pieces work together, the need for an LLC often becomes far less compelling.

Conclusion

LLCs are no longer the default solution for Florida investment property ownership—and for many landlords, they never should have been. With reassessment risks and rising costs, it’s time to return to fundamentals.

If you own rental property in Florida and are questioning whether your current structure still makes sense, it’s worth reviewing your options before making a costly move. If you have questions about liability protection, titling, or integrating rental property into an estate plan, contact Bart Scovill, PLC to discuss a strategy that fits your situation.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. This office does not provide tax advice. https://scovills.com/?p=3396

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Each new year brings questions about whether estate planning laws have changed and whether existing documents are still effective. For 2026, the answer is reassuring: there were no sweeping Florida changes, but there are updated federal tax numbers and a few recurring planning issues that continue to affect many Florida residents—especially those with older, do-it-yourself, or out-of-state estate plans.

This article explains the key 2026 updates and highlights situations where a review may be worthwhile.

Federal Estate Tax Exemption for 2026

Updated Number, Same Practical Reality for Most Families

For 2026, the federal estate and gift tax exemption (basic exclusion amount) is $15,000,000 per individual. Married couples can often preserve roughly $30,000,000 with proper planning.

A few practical points:

- This is a per-person exemption.

- Portability may allow a surviving spouse to use a deceased spouse’s unused exemption if the proper steps are taken.

- For most Florida families, federal estate tax exposure remains unlikely. Estate planning in 2026 continues to focus far more on control, protection, incapacity planning, and ease of administration than on federal tax avoidance.

Annual Gift Tax Exclusion for 2026

For 2026, the annual gift tax exclusion is $19,000 per recipient (per donor).

In practical terms:

- You may gift up to $19,000 to any individual in 2026 without filing a gift tax return.

- Married couples can gift up to $38,000 per recipient if both spouses participate (gift-splitting rules apply).

- Gifts above that amount typically require reporting, not immediate tax.

Used thoughtfully, gifting can be a helpful tool. Used casually, it can create unintended tax reporting issues—or, in some families, unintended fairness problems.

Florida Estate Planning Law: What Continues to Trip People Up

Homestead and Trust Ownership Issues

Florida homestead law did not change in 2026. However, homestead continues to be one of the most common problem areas we see when reviewing estate plans prepared elsewhere.

Issues typically arise when:

- A trust was created using generic or online forms

- An out-of-state plan was never adapted to Florida law

- A home was transferred into a trust without reviewing Florida homestead restrictions

- Trust language accidentally requires or permits a sale of homestead property

These are not “new” problems—and they are usually avoidable. Proper Florida estate planning accounts for homestead rules at the drafting stage. Problems most often appear when those rules were never reviewed in the first place.

Trust Funding Remains a Common Breakdown Point

A trust that does not own assets generally does not avoid probate.

Many people have valid trusts on paper but never completed the funding process. Common examples include:

- Real estate still titled individually

- Bank accounts never moved into trust

- Beneficiary designations that contradict the trust plan

This is not a legal change—it is an execution issue that continues to surface year after year.

Powers of Attorney and Financial Institutions

Banks and financial institutions remain cautious when accepting powers of attorney. This is especially true for:

- Older documents

- Non-Florida powers of attorney

- Documents lacking specific statutory authority language

Even when a document is technically valid, it may still be impractical if it’s drafted in a way that institutions routinely reject.

Digital Assets: Still Frequently Overlooked

Estate plans often fail to address:

- Online banking access

- Cloud-stored documents and photos

- Cryptocurrency and digital wallets

- Subscription-based financial accounts

Florida law allows planning for digital assets—but only if the documents grant the proper authority. Many older plans are simply silent on this issue.

When a Review Is Worth Considering

A review may be appropriate if:

- Your estate plan was prepared outside Florida

- You used online or non-lawyer documents

- You acquired or sold real estate

- Your family circumstances changed

- Your documents are several years old and have never been revisited

In many cases, the plan itself is not “wrong”—it is just incomplete or not tailored for Florida-specific issues.

Final Thoughts

The 2026 estate planning landscape is stable, not urgent. Federal numbers updated, Florida law stayed consistent, and most problems continue to stem from documents that were never properly tailored to Florida in the first place.

If you are unsure whether your current estate plan fully accounts for Florida law, homestead rules, or proper trust funding, Bart Scovill, PLC can help you evaluate whether a review makes sense for your situation.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice or tax advice. Reading this content does not create an attorney-client relationship. https://scovills.com/?p=3393

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