Recent Updates to Florida Estate Planning Law: What You Need to Know in 2024 and Beyond

Estate planning laws are always evolving, and Florida is no exception. The state has recently introduced several updates that can have a significant impact on how Floridians manage and protect their estates. Staying informed is crucial for ensuring that your estate plan remains effective and compliant. In this article, we’ll cover the most recent changes to estate planning laws in Florida and how they might affect your estate planning strategies.

1. Digital Assets and Estate Planning

• Background: Digital assets have become a major consideration in estate planning, ranging from cryptocurrency to digital records, photos, and social media accounts.
• Recent Update: Florida recently revised its laws to include broader definitions and handling of digital assets. The updated provisions clarify how personal representatives (executors) and trustees can access and manage digital assets.
• Key Implications: If your estate plan includes digital assets—especially high-value ones like Bitcoin or other cryptocurrencies—it’s vital to ensure your will, trust, or power of attorney explicitly addresses them. This will help your fiduciaries access and distribute these assets efficiently.

2. Remote Online Notarization (RON) and Estate Planning Documents

• Background: In 2020, Florida became one of the early adopters of remote online notarization, allowing estate planning documents to be notarized online. This became critical during the COVID-19 pandemic and has remained relevant since then.
• Recent Update: The state has introduced new regulations that further streamline and expand the use of RON, making it even more accessible for residents. Notaries are now required to complete specific training on handling RON for estate planning documents.
• Key Implications: For clients seeking convenience or who are unable to meet in person, RON provides a flexible and secure option for executing wills, trusts, and other essential documents. This change is particularly helpful for elderly clients or those with mobility issues.

3. Increased Homestead Exemption for Surviving Spouses

• Background: Florida’s homestead exemption protects the value of a Florida resident’s primary home from creditors, reducing the taxable value and securing the property for the family.
• Recent Update: The updated homestead exemption rules now offer increased benefits for surviving spouses, extending the protection period after the death of the homeowner. This change aims to provide more time for surviving spouses to adjust to financial changes and prevent foreclosure or forced sales.
• Key Implications: For married couples, this change reinforces the importance of including the homestead in the estate plan. Ensuring clear titles and beneficiary designations can maximize this exemption for surviving spouses.

4. Changes to Irrevocable Trust Rules

• Background: Irrevocable trusts have long been a popular estate planning tool for asset protection, Medicaid planning, and minimizing estate taxes.
• Recent Update: Florida recently adopted new rules regarding the modification of irrevocable trusts. Beneficiaries now have expanded rights to modify or terminate irrevocable trusts in specific situations, even without the grantor’s approval.
• Key Implications: This increased flexibility can be beneficial if the original terms of the trust become outdated or if the trust’s purpose is no longer relevant. Trustees and beneficiaries should regularly review irrevocable trusts to consider whether modifications would be advantageous.

5. Estate and Gift Tax Changes

• Background: While Florida does not impose a state-level estate tax, federal estate and gift tax thresholds still impact residents with significant assets.
• Recent Update: In 2024, the federal estate tax exemption is set at $12.92 million per individual, down from the prior year due to inflation adjustments. Any assets above this threshold may be subject to estate tax. The gift tax exemption remains at $17,000 per individual.
• Key Implications: Floridians with large estates should review their strategies, especially if the exemption decreases further in 2026 as currently scheduled. Utilizing gifts, charitable giving, and trust strategies may help reduce the taxable estate.

6. Enhanced Protections for Vulnerable Adults

• Background: Florida has always prioritized protections for vulnerable adults, particularly regarding financial exploitation.
• Recent Update: The state’s laws have been tightened to prevent the abuse or exploitation of the elderly and incapacitated adults during estate planning processes. For instance, there are stricter requirements for fiduciaries, with additional screening and reporting obligations.
• Key Implications: When creating or updating an estate plan for a vulnerable adult, extra precautions should be taken to ensure compliance with these new rules. Proper documentation and transparency in fiduciary appointments are crucial to avoid legal challenges.

How to Keep Your Estate Plan Current

With these recent updates, it’s more important than ever to review your estate plan regularly. Here are some practical steps to ensure your estate plan aligns with current Florida laws:

1. Conduct an Annual Review: Set a yearly reminder to review your estate plan. Check for changes in personal circumstances (e.g., marriages, divorces, births, or deaths) that might necessitate updates.
2. Consult with an Estate Planning Attorney: Working with an experienced Florida estate planning attorney can help you navigate these updates effectively. An attorney can ensure that your documents comply with the latest legal requirements and offer strategic advice based on new laws.
3. Address Digital Assets: Include detailed instructions on accessing and managing your digital assets, including passwords, cryptocurrency keys, and online accounts.
4. Consider Trust Modifications: If you have an irrevocable trust, evaluate whether recent law changes make it possible or advantageous to modify the terms.
5. Plan for Federal Tax Changes: If your estate is close to the federal exemption threshold, explore strategies like gifting, charitable trusts, or other advanced planning techniques to minimize future tax liabilities.

Final Thoughts

Florida’s recent updates to estate planning laws reflect a commitment to adaptability, digital inclusivity, and increased protections for residents. Whether you’re updating an existing plan or creating a new one, understanding these changes can help you make informed decisions to safeguard your estate.

For personalized advice, consult with a qualified estate planning attorney who stays up-to-date with Florida’s evolving legal landscape.