Estate Planning Essentials For New Florida Residents: Adapting Your Plan
According to the Florida Chamber of Commerce, approximately 250,000 new Florida residents moved to the Sunshine State in 2024. Many of these new arrivals were beyond retirement age, and they may need to consider various estate planning essentials after settling in Florida. Distinct laws in this State may provide various estate planning opportunities that are impossible in other jurisdictions. On the other hand, strategies that are viable in other states may not be replicable in Florida – requiring new Florida residents to make certain adjustments to their estate plans. Whether individuals are planning moves in the future or have already arrived in the Sunshine State, it makes sense to discuss this subject further alongside experienced estate planning attorneys in Florida. Consider calling Loughlin Law, P.A. at (561) 677-8384 to continue this discussion.
You Must Establish Your Domicile in Florida to Experience Certain Estate Planning Advantages
New Florida residents may experience various estate planning advantages. However, they must officially become Florida residents in order to experience these advantages – and this means establishing a “domicile” in the Sunshine State. New Florida residents can do this by remaining in the state for at least 183 days, full-time. A retirement-age individual who wants to establish a domicile might choose to purchase a new property in Florida and spend six months living there. The next steps include obtaining a Florida license to operate a motor vehicle, formally changing the listed address for state and federal tax returns, registering to vote in Florida, and moving accounts to a Florida-based bank. Speak with Loughlin Law, P.A. to learn more about establishing a Florida domicile.
The primary advantage of establishing a domicile in Florida is the elimination of estate taxes. Many new arrivals come from states with estate taxes, and they may have chosen the Sunshine State specifically to avoid these taxes. However, Florida only allows new arrivals to avoid estate taxes if they are official residents with domiciles in the state.
Consider the Homestead Exemption When Choosing a New Home in Florida
Aside from eliminating estate taxes, many people move to Florida to take advantage of its generous homestead exemption. Under this law, a creditor cannot take away the home of a Florida resident if they fail to pay their bills. The only exceptions to this rule involve Internal Revenue Service (IRS) debts and mortgage delinquencies. When pursuing all other debts, it is virtually impossible for creditors to force Florida residents to sell their primary residences. While a few other states offer similar creditor protections, no other jurisdiction goes as far as Florida. There is no upper limit, and a debtor could potentially shift millions of dollars of equity into Florida real estate for protection against creditors. This law falls under the Florida Constitution, and it specifically prevents forced sales.
This is something new Florida residents might want to consider when settling in the Sunshine State. The homestead exemption could be particularly effective for those who have existing debt. As long as the debt is not related to unpaid taxes or mortgages, it may become difficult for creditors to recover once homebuyers shift their assets to primary residences in Florida. While some retirement-age individuals may be tempted to downsize when moving to Florida, a more expensive purchase could be beneficial to certain individuals seeking asset protection.
Holographic Wills Are Not Valid in Florida
Although some states allow holographic Wills, Florida is not among them. If new Florida residents have existing holographic Wills, they need to create more formal Last Wills and Testaments after arriving in the Sunshine State. An experienced estate planning attorney in Florida can assist with this process, and a Will is one of the most straightforward estate planning essentials to draft and finalize. During this process, new Florida residents may also consider various estate planning strategies involving Wills, including pour-over trusts and testamentary trusts.
Florida Does Not Allow Self-Settled Trusts
New Florida residents may also have self-settled trusts established in their home states. These new arrivals should know that Florida does not allow self-settled domestic asset protection trusts (DAPTs). These trusts are relatively popular across the United States, offering solid protection from creditors and lawsuits while reducing estate taxes. DAPTs are frequently used by high-net-worth families.
Although Florida does not allow its residents to establish DAPTs, new arrivals can still use DAPTs previously established in their home states. However, this arrangement may pose complex issues for new Florida residents – and it makes sense to discuss existing DAPTs with a Florida estate planning attorney after arriving. If individuals plan to create DAPTs in the near future, they may want to do so before relocating to Florida.
You May Need to Find a Florida Resident to Act as Your Executor
One estate planning essential is choosing an executor. New Florida residents may arrive in the Sunshine State having already chosen their executors, but these individuals may not be recognized by Florida probate courts. Florida law states that unless an executor is related to the decedent by blood, marriage, or adoption, they must be a Florida resident.
After arriving in the Sunshine State, it may be necessary to select a new executor who resides in Florida. In certain circumstances, it may be easier to simply create a new Will rather than select a new executor for an existing Will. This may be something worth discussing with an estate planning lawyer after arriving in Florida.
Discuss Estate Planning Essentials With Loughlin Law, P.A.
A move to Florida could offer numerous legal, financial, and lifestyle benefits. In order to fully benefit from all that the Sunshine State has to offer, new Florida residents should carefully consider the legal differences between this jurisdiction and their previous home state. With help from an experienced estate planning lawyer in Florida, it may be possible to set the foundation for a stable, sustainable future in a city like Boca Raton, Cape Coral, Fort Myers, or Miami. With a few straightforward changes to estate planning essentials, a lawyer may help make this move as seamless as possible. To learn more about potential estate planning adjustments, consider contacting Loughlin Law, P.A. at (561) 677-8384.
