Getting married is a joyous occasion that marks the beginning of a new chapter in life. However, marriage also brings significant legal and financial changes that may directly affect your estate plan. Whether it’s your first marriage or a subsequent one, reviewing and updating your estate plan is crucial to ensure your wishes are honored and your loved ones are protected.
1. Florida’s Elective Share Law
Florida law provides that a surviving spouse is entitled to an elective share of the deceased spouse’s estate. This is typically 30% of the estate, including both probate and some non-probate assets. If your current estate plan excludes your spouse, they may still be entitled to this share, overriding your existing directives.
To address this:
- Update your will and trust documents to explicitly account for your new spouse, if desired.
- Consider executing a prenuptial or postnuptial agreement to waive the elective share if you wish to limit your spouse’s entitlement.
2. Joint Ownership of Assets
Marriage often results in the joint ownership of assets such as bank accounts, real estate, and vehicles. Jointly owned assets typically pass to the surviving owner upon death, bypassing probate. This can unintentionally disrupt your overall estate planning goals if not properly coordinated with your will or trust.
What to do:
- Review how assets are titled and ensure they align with your estate plan.
- Decide whether joint ownership or another method, such as a trust, is the best option for asset distribution.
3. Updating Beneficiary Designations
Marriage does not automatically update beneficiary designations on retirement accounts, life insurance policies, or payable-on-death accounts. Failing to update these can result in unintended beneficiaries, such as an ex-spouse or other relatives, inheriting these assets.
Action steps:
- Update beneficiary designations to include your spouse or other desired individuals.
- Review all accounts and policies to ensure consistency with your estate plan.
4. Homestead Property Considerations
Florida’s homestead laws grant specific protections and restrictions on your primary residence. If you own a home and get married, your spouse gains certain rights to the property, even if it is solely in your name. For example, a surviving spouse has the right to either a life estate in the homestead or a 50% share of the property as tenants in common.
To address this:
- Consider executing a valid nuptial agreement if you wish to waive spousal rights to the homestead.
- Discuss transferring the home into a trust to better control its distribution.
5. Considerations for Blended Families
If you or your spouse have children from previous relationships, marriage can complicate estate planning. Florida’s intestacy laws—which govern how assets are distributed without a will—may unintentionally prioritize your spouse over your children, or vice versa.
To avoid disputes:
- Update your will and trust to clearly outline your intentions for all children and stepchildren.
- Use tools like qualified terminable interest property (QTIP) trusts to provide for your spouse while preserving assets for your children.
6. Health Care and Financial Decisions
Marriage often impacts who will make decisions for you in case of incapacity. If you previously named someone else, such as a parent or sibling, as your health care surrogate or durable power of attorney, you may want to update these documents to reflect your spouse’s new role in your life.
Steps to take:
- Update your advance directives, including your health care surrogate designation and living will.
- Update your durable power of attorney to grant your spouse the necessary authority to manage your affairs.
7. Tax Implications
Marriage can also bring tax benefits that affect your estate plan. Florida does not have a state estate tax, but federal estate tax considerations may change based on your marital status. Married couples can take advantage of the unlimited marital deduction, allowing the transfer of assets between spouses without incurring federal estate taxes.
What to consider:
- Work with an experienced estate planning attorney to optimize your estate for tax purposes.
- Consider using portability to transfer any unused portion of the federal estate tax exemption to the surviving spouse.
Final Thoughts
Getting married is an exciting time, but it’s also an important moment to reassess your estate plan. Florida’s laws and the unique dynamics of your new marriage can have significant implications for your assets and loved ones. By proactively updating your documents and making thoughtful decisions, you can ensure your estate plan reflects your new life together.
If you’ve recently tied the knot or are planning to, contact our office to schedule a consultation. We’re experienced in helping individuals and families navigate the complexities of estate planning in Florida and would be happy to assist you in creating a plan tailored to your needs.
