Understanding Estate Planning in Florida: Essential Questions Answered by Attorney Jamie Cuzmar

What's the key difference between a will and a trust?

A trust acts like a "will on steroids" with additional legal language to avoid probate court. It functions as a contract between a person and their assets, allowing direct control over asset distribution. While wills must go through probate court for approval, trusts can bypass this process. Though judges generally approve wills that align with legal requirements, having a trust typically creates a smoother inheritance process for loved ones.

When should someone start thinking about estate planning?

Estate planning becomes relevant once you have assets to protect and loved ones to provide for. This doesn't necessarily mean just children - it could include grandchildren, siblings, or other family members. In Florida, if you own at least one house, you might benefit from a Lady Bird Deed, a special tool available in only five states. As you accumulate more assets, you can transition from simpler solutions to more comprehensive plans like trusts.

What happens if someone dies without a will in Florida?

Without a will, assets go through probate either as a formal administration or summary administration, depending on the deceased's timing and asset value. Florida's default distribution scheme typically follows a natural progression: first to spouse, then to children. However, without a will, you lose control over specific distributions and cannot include preferences for matters like vehicle inheritance or funeral arrangements.

How many assets should you have before considering estate planning?

Many assets, such as bank accounts, life insurance policies, and retirement accounts, are exempt from probate if they have designated beneficiaries. It's crucial to keep beneficiary forms updated and consider naming your trust as a contingent beneficiary. This provides backup protection if primary beneficiaries are unavailable and helps avoid probate complications.

How often should estate plans be reviewed?

Estate plans should be reviewed every two to three years on average. Trust-based clients may benefit from annual reviews to ensure beneficiary designations are current and trust integration remains optimal. Major life changes like marriage, divorce, or new children should trigger immediate plan reviews.

What are common DIY estate planning mistakes?

A significant mistake is adding children to property deeds or titles while still alive. This can remove important protections and create complications:

Loss of "step-up in basis" tax benefits

Requiring child's permission for property changes

Exposing property to child's potential lawsuits

Risk of unintended inheritance by child's spouse

How do Florida's homestead laws affect estate planning?

Florida's homestead laws are specific about property inheritance. If married, you generally can't leave your homestead to someone other than your spouse without their consent. With minor children, the homestead must pass to them if you're unmarried or divorced. These laws aim to protect families and ensure housing security, particularly for minor children.