Estate Planning for Snowbirds: Multi-State Issues in Florida

Being a “snowbird” is not a new concept – even back in colonial times, letters were exchanged between founding fathers discussing how the family planned to “summer” or “winter” in one familial home or another as the seasons came and went.

As most good ideas go, being a snowbird is a popular lifestyle choice, particularly in Florida. Spending cooler months in southern climates and hotter months in the north is an enviable arrangement, to those who have managed to adopt the lifestyle. This arrangement does, however, come with some unique challenges in the realm of estate planning. If you are part of a snowbird family dividing your time between two states, there are rules and regulations you should be aware of as you set up your own estate plan.

State Laws

Snowbirds need to be aware that each state in the U.S. will have its own set of laws and regulations that will apply to issues in estate planning. What this can mean is that what is legally binding and acceptable in one state does not pass legal muster in another state. It is important that you understand not only Florida’s laws – but how Florida law interplays with your other home state’s law as well.

Taxes, in particular, need to factor into a couples’ estate planning. Different states have varying tax structures. This means that the strategy that best suits your needs in terms of estate taxes, inheritance taxes, and or income taxes, could vary.

Clearly, effective estate planning for snowbirds requires planners to take a comprehensive approach that accommodates their estate’s unique needs.

What are the Implications of Living in Two States?

Snowbirds commonly enjoy dual-state residency. This often arises when you own property and establish significant connections in more than one state.

There are many potential implications of dual-state residency in estate planning to bear in mind:

• Probate: One significant challenge facing snowbirds is determining how each state will handle the probate process. Probate is the legal procedure where a last will and testament is validated, estate debts paid off, and assets distributed to beneficiaries/heirs. If an estate plan is fumbled, and a last will and testament is deemed valid in one state but not in another, it can lead to legal complications and potentially slow probate proceedings.
• Trust laws: Trusts are a commonly used tool in estate planning. However, some states may have favorable laws for certain trusts, which impact how assets will be managed.
• Health care directives and powers of attorney. These documents are often crucial. However, snowbirds need to ensure that their directive or power of attorney is recognized in both states.
• Property and real estate laws. Owning property in different states requires an understanding of each state’s property laws.

These are just some of the reasons it is imperative for snowbirds to have a clear understanding of the legal requirements and implications in play in both states that they own property and reside in. Navigating these legal waters can be complex, often requiring the expertise of experienced will & probate attorneys.

Contact Suncoast Civil Law

Ensure that your estate plans are tailored to fit your personal needs. Whether you are living the snowbird lifestyle, or simply seeking guidance on how best to approach your own estate plan – contact the experienced Sarasota wills & probate attorneys at Suncoast Civil Law.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/Sections/0732.502.html

kiplinger.com/retirement/why-do-people-retire-in-florida-what-you-must-know