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
No comments:
Post a Comment