It’s no secret that Florida is a popular retirement destination. However, there may be various legal considerations for people moving to Florida. One you don’t want to lose sight of is how it may affect estate planning. Florida estate planning mistakes are common among new residents who assume their old legal documents remain effective.
Unfortunately, many families only realize there is an issue during probate or a medical emergency. Reviewing and updating your estate plan can help you and your family avoid these issues. Read on as we explore common mistakes and what you can do to correct them.
Why Florida Estate Planning Is Different
Florida has specific laws that shape estate planning in ways that differ from other states.
- Homestead protections restrict how your primary residence is transferred, protecting spouses and minor children.
- Probate requirements can invalidate wills or trusts created elsewhere. Even minor differences may cause a document to fail.
- Healthcare directives must meet state guidelines to be valid with doctors and hospitals.
- Florida financial institutions may not accept power of attorney forms from another state.
Florida is among the most protective states when it comes to property rights. It is good for families, but it can be difficult if plans are outdated. New residents often underestimate how these rules affect inheritance, taxes, and asset transfers.
Common Florida Estate Planning Mistakes New Residents Make
Not Updating Old Wills and Trusts
Many people arrive in Florida with estate plans they drafted in another state. Unfortunately, wills that work elsewhere may not meet Florida’s strict standards. For example, Florida does not recognize “holographic” wills, even if valid in other states. Executors you named in your old will may also not qualify if they live outside Florida.
Trusts you created elsewhere may need revisions, too. Florida has unique requirements for trustee authority, beneficiary rights, and tax treatment. Without updates, your trust may not function as intended, leaving loved ones without clear guidance.
Ignoring Florida Homestead Protections
Florida homestead law provides strong protection for your primary residence. Creditors cannot force the sale of your home in most cases. However, the law also limits how the property can pass after death. A spouse or minor child usually has guaranteed rights to the home.
If your will or trust gives the home to someone else, Florida law may override it. For example, the law might not allow you to leave your home to adult children while your spouse is still alive. This mistake can cause conflict between family members and delay probate.
Failing to Re-Title Assets
Property ownership rules vary by state. In Florida, re-titling assets after a move is essential. Bank accounts, real estate, and investments often need to be updated to reflect Florida law. Without re-titling, your property may be subject to probate, even if you intended otherwise.
Beneficiary designations also require review. Out-of-date designations can cause accounts to pass to the wrong person. Many families are surprised when a former spouse or relative inherits simply because the paperwork was never updated. Correct titling and designations ensure your assets go exactly where you want.
Overlooking Health Care Directives and POA
Medical and financial directives are critical parts of estate planning. Florida requires specific wording for powers of attorney, living wills, and health care surrogate designations. Documents from another state may not meet these standards. If they are invalid, your loved ones could struggle to make important decisions.
Without valid directives, doctors may hesitate to follow instructions or turn to the courts for guidance. That can cause stress during emergencies. Updating these documents guarantees that your chosen agents can act quickly and without resistance.
Forgetting Tax and Financial Implications
Florida does not impose an estate or inheritance tax, which is a relief for many residents. But the federal estate tax still applies to large estates. Retirement accounts and investment properties also require special planning. If you don’t handle these assets correctly, beneficiaries may face avoidable taxes.
Real estate investors often forget to update property ownership structures after moving. Florida offers options like enhanced life estate deeds, known as “Lady Bird deeds.” These tools allow property to pass outside probate while retaining control during life. Overlooking these opportunities can increase costs and delays.
How to Avoid These Estate Planning Pitfalls
Avoiding mistakes starts with reviewing your estate plan as soon as you move to Florida.
- Work with a Florida estate planning attorney. They understand local laws and can ensure compliance.
- Update wills and trusts. Replace old documents with Florida-compliant versions to prevent probate issues.
- Check property ownership. Make sure your home and accounts are properly titled under Florida law.
- Revise health care directives and POA. Confirm they include Florida’s required language.
- Review taxes and retirement accounts. Take advantage of Florida’s benefits while complying with federal rules.
Regular reviews are essential, especially after major life events. Marriage, divorce, the birth of a child, or purchasing new property can all require changes to your plan. Even outside major events, it is good to review and update your estate plan every few years.
FAQs
Do I need a new will when moving to Florida?
Yes. Updating your will ensures compliance with Florida law and reduces the chance of probate challenges.
Are out-of-state powers of attorney valid in Florida?
Often they are not. Banks and financial institutions in Florida may reject out-of-state forms. A new document avoids problems.
Does Florida have an estate tax?
No. Florida does not impose an estate or inheritance tax, but federal estate tax rules still apply.
Can my spouse inherit the home automatically?
Florida’s homestead law gives spouses and minor children special inheritance rights. Your plan must account for these protections.
Protect Your Florida Home and Legacy
Moving to Florida is a fresh start, but overlooking your estate plan can create problems later. By avoiding common Florida estate planning mistakes, you protect your home, preserve wealth, and provide for your family with confidence.
Don’t wait until an emergency reveals gaps in your plan. Contact Scott Law Offices today for trusted guidance. Our team will review your documents, update them for Florida compliance, and help you create a new plan.
