I often work with clients who live in other states and are considering moving to Florida, or who have recently moved from another state. These individuals are often called "snowbirds"—they come to Florida during winter months, sometimes extending their stays throughout the year.
Why People Choose Florida
Obvious Attractions
- Great weather, especially during winter
- Hard to beat Florida's winter climate
Financial Benefits
- No state income tax
- No state estate tax or inheritance tax (federal estate tax still applies)
- Favorable asset protection laws
Understanding these benefits is crucial for your estate planning strategy.
Florida's Asset Protection Advantages
Under Florida law, several assets are considered exempt by statute, meaning they may receive protection if you're sued:
- Florida homestead property
- Property owned jointly with spouse as tenants by the entireties
- IRAs and inherited IRAs
- Cash value life insurance
- Annuities
Three Snowbird Scenarios
Scenario 1: Living in Another State, Considering Florida
- Establish solid estate plan in your home state first
- If you have Florida property (even if not primary residence), consult Florida lawyer about property titling (LLC, corporation, etc.)
- Consider "ancillary documents" for Florida: durable power of attorney and healthcare directives compliant with Florida law for emergencies while visiting
Scenario 2: Now Domiciled in Florida with Properties in Other States
- Have Florida estate plan drafted by Florida lawyer
- Consult with lawyers in other states where you have property/business interests for state-specific documents
Scenario 3: About to Move to Florida (Decision Made, Date Set)
- Update estate plan to Florida law immediately
- Build relationship with Florida lawyer
- Take actions to clearly demonstrate Florida domicile (not your former state)
Establishing Florida Domicile
Work with a Florida lawyer to take multiple actions demonstrating Florida is your domicile. The more actions you take, the better your position if your former state (especially if they have state income tax) audits you claiming you're still their resident.
Florida Homestead Benefits
A Florida lawyer can help establish Florida homestead, which provides:
- Asset protection benefits
- Property tax reduction in current year
- Cap on future increases (typically cannot exceed 3% annually)
You can have only one homestead (your primary residence), but there are requirements to qualify for homestead treatment.
Conclusion
Whether you're considering Florida or have recently moved here, there are specific issues that need proper attention to put you and your loved ones in the best position possible. Contact our experienced team for guidance tailored to your situation.
End of Year Estate Planning: Should You Review Your Estate Planning Documents?
In my 15+ years practicing trusts and estates law, I'm often asked when to update an estate plan or have it reviewed.
General Rule
If it's been more than three years since you put your plan in place or had it reviewed, it's probably time for a lawyer to review it to ensure it's current and well-suited to your situation.
Three Common Issues Requiring Review
1. Accuracy and Currency
Relationships change—your best friend from 10 years ago might not be your current best friend. If you named them as a fiduciary for financial or healthcare decisions, you should update those documents.
Consider these changes:
- Marriage or divorce
- Additional children or grandchildren
- Changed beneficiary choices or inheritance shares
- Charitable intent changes
- Name changes (due to marriage/divorce)
- Address changes
2. Probate Avoidance and Beneficiary Designations
Since your plan was created, have you:
- Opened new accounts?
- Updated beneficiaries to current preferences?
- Acquired real estate in your individual name?
- Purchased cryptocurrency?
- Started a new business?
If yes to any, you should have your plan reviewed.
3. Federal Estate Tax Law Changes
Significant changes have occurred over the past decade.
2011: Advent of Portability
Allows surviving spouses to use deceased spouse's unused estate tax exemption. If your estate plan was drafted in 2010 or earlier, it likely doesn't reflect this important change.
End of 2025: Major Reduction Coming
Current estate tax exemption (almost $12 million in 2023) is set to drop significantly to approximately $6.5 million (inflation-adjusted)—nearly a 50% reduction—unless Congress acts (which seems unlikely).
Are You Prepared?
If you answered "yes" to any questions raised in this discussion, you should probably have your plan reviewed. Learn about preparing for tax law changes and current estate planning strategies.
We're happy to help—please reach out by phone or through our website contact form.
