Recent Developments in Florida Estate Planning Laws
An Overview by Yanitza Schoonover of The Schoonover Law Firm
Florida’s estate planning landscape is continually evolving, with recent changes offering new opportunities and challenges for residents. Yanitza Schoonover, a leading Miami estate planning attorney at The Schoonover Law Firm, provides an overview of these developments and their potential impact on estate planning strategies.
One of the most significant changes is the introduction of the Florida Community Property Trust Act. This new law allows married couples in Florida, including those in populous cities like Hialeah (220,490 residents) and Hollywood (152,131 residents), to opt-in to community property treatment for assets held in a Florida-sitused trust. This change could provide valuable income tax avoidance opportunities under the right circumstances.
Another notable development is the enhancement of Florida’s Spousal Lifetime Access Trusts (SLATs). SLATs have gained popularity in recent years due to the threat of federal gift, estate, and GST tax exemptions reduction. A law effective from July 1, 2022, protects a contingent reversionary interest in the trust for the settlor spouse from his or her creditors if the beneficiary spouse were to die first. This change makes SLATs an even more attractive estate planning tool for Floridians, including those in Coral Springs (133,507 residents) and Davie (106,306 residents).
However, it’s important to note that these changes, while potentially beneficial, also come with complexities. For instance, it’s unclear whether a settlor spouse’s contingent reversionary interest in a new Florida SLAT would avoid inclusion in the settlor spouse’s estate when he or she dies. This uncertainty underscores the importance of seeking expert legal counsel when considering these estate planning techniques.
Lastly, Florida has extended the time a trust can exist, known as the rule against perpetuities (RAP) period. The new law extends the RAP period to a staggering 1,000 years for trusts created on or after July 1, 2022. This change could be beneficial for those seeking trust continuity well into the future, including residents of Boca Raton (99,224 residents).
As a seasoned Hialeah probate lawyer and Miami estate planning attorney, Yanitza Schoonover is well-equipped to navigate these changes and provide tailored estate planning advice. To learn more about how these developments could impact your estate planning strategy, contact The Schoonover Law Firm today.
