Florida’s Changing Trust Laws

Florida’s numerous Estate Planning laws make it possible for wealthy families to benefit from long-term, highly efficient Estate Planning strategies. With the latest updates to the state’s Trust laws, families hoping to protect their legacy for future generations for years to come will find new opportunities to do just that.

Senate Bill 1368, pushed through the state Legislature in 2023 and signed into law by Gov. Ron DeSantis in May, presents numerous changes to existing laws, creating new opportunities for conserving and building wealth. Anyone considering the establishment of a Trust in Florida can work closely with our legal team at The Siegel Law Group, P.A. to create a far-reaching, adventitious Estate Plan that capitalizes on these new opportunities.

New Laws Extend Trust Life in Florida

The new law makes several important changes to the state’s Estate Planning legal strategies. One of the most significant is the extension of the life of a Trust. This extended the limits of the existing laws from 360 years to 1,000 years. By comparison, most other states limit the life of Trusts to just 90 years.

The longer a Trust can remain in place, the longer it can provide a tax shield for the assets within it, helping to protect a family’s wealth for generations to come. Though Florida is not the only state to push the limit to 1,000 years, it is one of the most aggressive. This means that any party with any interest in a Trust established on July 1, 2022, or after must be vested within 1,000 years of the creation of that interest.

Community Property Trust Act Put in Place

Another change is the enacting of the Community Property Trust Act. This change allows married parties to hold assets within a community property Trust. This means the couple can benefit from holding property in the Trust once it is created. In comparison, prior to the new law, the community property Trust was not established until the death of one spouse.

The state’s laws allow married people to jointly own property as joint tenants with right of survivorship. Married couples can also own property as tenants by the entirety. When a spouse dies, the other spouse inherits the other half of any jointly owned property. This creates a basis adjustment for only that half share of the property.

By comparison, in a community property scenario, at the time of the death of the first spouse, the community property owned by the couple typically receives a step up in fair market value. This combines both shares.

The new law makes it possible for couples to take advantage of this tax advantage. Though there are numerous stipulations to this process, it could provide an avenue for tax reduction in some situations. This decision should be made closely with the guidance of an Estate Planning Attorney since timing can play a critical role in ensuring the benefits are achieved.

What Could These Changes Do for Your Financial Future?

For those individuals planning to establish a Trust in the state of Florida, it can be critical to consider the structure as well as the limitations of these plans. Taking full advantage of these laws could allow for tax-building strategies that reduce costs across generations, and with careful planning, many people could see a marked improvement in their long-term goals.

Florida is a state known for its aggressive Estate Planning laws, including Trusts. This creates a core opportunity for many people to achieve better protection for the assets they worked hard to create. Yet, this is a complicated area of the law, one that has a lot on the line. If you are planning to establish a Trust or wish to change the current Trust in place, it is critical to work with an experienced Estate Planning Attorney who can facilitate a well-created plan that addresses your specific needs.

Note that in the last several years, Florida has made significant changes to Trust Laws and Estate Laws in the state. As a result, it is critical for you to have an up-to-date understanding of the state’s current legal situation when putting a Trust in place or managing your Trust on an ongoing basis. Our team can offer you the guidance you need throughout the lifetime of your Trust.

How The Siegel Law Group, P.A. Can Help You Establish the Trust Protections You Deserve

Creating Peace Of Mind for yourself and for your family is a financial obligation many people prioritize with good reason. Where you establish a Trust, the terminology and details of it influence how that Trust can grow and be passed down through generations. There are numerous flexibilities in Florida Estate Planning laws, and having an experienced and trusted Attorney who understands those laws is critical.

Our Estate Planning Attorneys in South Florida provide an opportunity for you to create a highly specialized Trust that fits your specific needs. As experienced Estate Planning Attorneys who are up to date on all of Florida’s changing laws, we are ready to help you take full advantage of the opportunities that make sense for you and your family’s future. When you meet with us, we will provide you with comprehensive details on what strategies may be best suited to your unique situation based on your goals and your financial means. Through careful planning and experienced execution, our team can help you to achieve that peace of mind you are seeking.

Call THE Family South Florida Estate Planning Attorneys – The Siegel Law Group, P.A.

Florida’s change to Trust Laws are critical to understand, but they are also highly complex, with numerous requirements for properties to be eligible for any of these opportunities. As a result, it is critical to work closely with an experienced Trust Attorney who has extensive knowledge of these laws and all others impacting your Estate Plans to ensure you achieve the best possible outcome in your specific situation. Let us help you.

Call our office at (561) 955-8515(561) 955-8515 to schedule a complimentary consultation, or submit our online contact form to schedule a consultation today. If you have any questions, do not hesitate to contact us.