Advanced Estate Planning in Florida: A Primer

A basic estate plan, which fewer than a third of Floridians have, is the foundation for an advanced estate plan. Most families include complex dynamics (marriage and remarriage, estrangement and reconciliation, etc.). Other families have substantial assets or unique goals. All these families need to add onto the foundation and obtain an advanced estate plan.

Florida’s unique legal framework, such as its homestead laws, creditor protection statutes, and tax-friendly environment (no state income or estate tax), gives a St. Petersburg estate planning lawyer a unique opportunity for long-term strategic estate planning. Advanced estate plans are investments of time and money. These investments almost always pay large dividends.

Revocable and Irrevocable Trusts

Many basic estate plans include basic trusts. These basic trusts are only the tip of the iceberg, in terms of possibilities.

Revocable living trusts allow people to maintain complete control of their assets during their lifetimes, and avoid the complexities and expense of probate upon death. Irrevocable trusts allow additional asset protection and room for more estate tax planning. These trusts permanently remove assets from the estate, protecting them from creditors and potentially reducing federal estate tax exposure.

Common trusts include Irrevocable Life Insurance Trusts (ILITs) which exclude life insurance proceeds, often the largest single testacy (death) asset, from the taxable estate. Qualified Personal Residence Trusts (QPRTs) transfer a personal residence to heirs at a reduced gift tax cost and Grantor Retained Annuity Trusts (GRATs) transfer assets with minimal gift tax implications.

Asset Protection Strategies

We mentioned Florida’s favorable laws above. A St. Petersburg estate planning lawyer augments these legal protections with legal devices like Limited Liability Companies (LLCs) and Family Limited Partnerships (FLPs) that hold investment properties or business interests. These structures protect assets from creditors and facilitate centralized family asset management.

Charitable and Philanthropic Planning

Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs), and private foundations integrate philanthropic goals into an estate plan.

As a bonus to the maker, these strategies provide tax benefits while supporting philanthropic goals. For example, a CRT lets the donor receive income for life. The remainder going to charity, thus reducing both estate and income taxes.

Business Succession Planning

This section is especially useful for family businesses. Estate planning strategies help ensure a smooth ownership transition. Tools such as buy-sell agreements, succession trusts, and gifting shares over time help avoid disruption and minimize tax liabilities. On a side note, valuation discounts often apply when owners transfer minority interests through FLPs or LLCs.

Estate Tax Planning

Federal estate taxes apply to estates exceeding the exemption threshold ($13.61 million per individual in 2025). That amount seems high, but when adding all personal and real property, such as life insurance payments and a home, it adds up quickly.

Planning strategies include lifetime gifting, spousal portability elections, and leveraging generation-skipping trusts (GSTs) to preserve wealth across multiple generations.

Homestead Considerations

Florida’s unique homestead laws specially impact a will or trust, especially when planning for blended families or attempting to leave a primary residence to someone other than a surviving spouse or minor child.

Connect With a Hard-Working Sarasota County Lawyer

The essential estate planning process isn’t as complicated as many people believe it is. For a confidential consultation with an experienced estate planning lawyer in Lakewood Ranch, contact Drude Tomori Law. After-hours visits are available.

Source:

usatoday.com/story/money/2024/04/03/fewer-americans-writing-a-will/73170465007/