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Sometimes life events occur that require a change in Estate planning.  In Florida will contests and Probate litigation can often turn on the strange set of circumstances surrounding whether or…

With the popularity of “avoiding probate” seminars, books and do-it-yourself guides that flooded the State of Florida over the past decades it is little wonder that our state has seen…

A common question presented to our office during Estate planning consultations is how to avoid probate in Florida.  Complicated and high value estates may benefit from the creation of a Trust and the management of assets into a trust to avoid the costs and expenses of a probate administration.

Often the only asset or major asset subject to probate will be a home.  A very simple and cost-effective method to avoid the costs associated with a Florida probate proceeding related to a property is accomplished through the implementation of an Enhanced Life Estate Deed or “Lady Bird” Deed.   The deed is executed by the current owner of the property and provides that the owner will retain the ability to use the property and continue to have unrestricted ownership and upon the death of the owner it will pass automatically to the designated person called the remainder. (more…)

Often because of an inheritance or a change in circumstances, two unmarried people end up jointly owning real estate.  This can create all sorts of problems for issues like rental income, responsibility for expenses (mortgage, taxes, property insurance etc…).  If you own a property in Florida with someone and you are not getting the fair value of rental income, paying too much for expenses or simply need to liquidate the property a Partition Action may be appropriate for you. 

Florida Statutes 64.011-64.091 codify the right of Partition, which is a division of property among co-owners.  It is an equitable action aimed at restoring the interest of parties to property to arrive at a fair and equitable result.   (more…)

Florida probate administration has statutory rules governing what should happen if there are simply not enough assets to pay all the distributions identified in an estate.  These statutory rules are known as the rules of abatement.    These statutory rules will control unless the Last Will and Testament admitted to probate Court in Florida has a specific set of rules for which property should be satisfied or liquidated to pay an expense of administration.

STEP 1 – IDENTIFY THE CLASS OF GIFTS IN YOUR LAST WILL AND TESTAMENT

Florida law recognizes different categories of gifts.  They are as follows

a) Specific gift: As the name implies, this is a specific asset of the decedent devised to a beneficiary. These gifts can only be satisfied by giving the  person the specific item of property.  If the item does not exist at the time of the death of the decedent, that gift or devise fails, meaning that the provision is not enforceable and the beneficiary is not entitled to an item of equivalent value.

Example: To my daughter Angelina, I give my engraved hunting rifle

b) Demonstrative Gift: A bit of a hybrid of the previous two, a demonstrative gift is a gift payable out of a particular source, but if not available then out of the general assets of the estate.

Example: I give 200 shares of Z Corp to my daughter Angelina if she survives me.  This is to be paid from my Z Corp shares which I have at death if it exists, otherwise my Personal Representative shall make provision for payment of the equivalent value of 200 shares of Z Corp from other assets in my estate then existing at my death.

c) General Gift: General gifts are payable from the general assets of the property and may be satisfied from a range of assets in the estate. Importantly, unlike a specific gift, if this item does not fail if it does not exist at the time of death.

Example: To my daughter Angelina, I give a 2016 Nissan Rogue, if I do not own such a vehicle at my death I direct my Personal Representative to purchase one and provide it to her.

d) Residuary Gifts: The term residue, or “rest, residue and remainder” of an estate is the catch all for the remaining assets after all specific assets have been distributed.

Example: “I give the rest, residue and remainder of my estate wherever situated whether it be personal or real property to my wife.” (more…)

A recurring problem in Florida real estate transactions is an invalid conveyance or sale because of the failure to understand Florida’s restrictions as to the sale of a homestead property as to a married couple.  In Florida if your married the State of Florida, via its constitutional protections for its citizens imposes some restrictions on the sale of “homestead property” (ie your domicile) so as to advance the public policy interest of not leaving spouses or minor children without a home.  Those protections are derived from Fla. Const. Art. X 4(c) which provides the following language:

SECTION 4. Homestead; exemptions.—

(a) There shall be exempt from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty, the following property owned by a natural person:

(1) a homestead, if located outside a municipality, to the extent of one hundred sixty acres of contiguous land and improvements thereon, which shall not be reduced without the owner’s consent by reason of subsequent inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the exemption shall be limited to the residence of the owner or the owner’s family;

(2) personal property to the value of one thousand dollars.

(b) These exemptions shall inure to the surviving spouse or heirs of the owner.

(c) The homestead shall not be subject to devise if the owner is survived by spouse or minor child, except the homestead may be devised to the owner’s spouse if there be no minor child. The owner of homestead real estate, joined by the spouse if married, may alienate the homestead by mortgage, sale or gift and, if married, may by deed transfer the title to an estate by the entirety with the spouse. If the owner or spouse is incompetent, the method of alienation or encumbrance shall be as provided by law. (more…)