Florida & The Estate Planner

According to Correy E. Stephenson, The Florida ‘boom,’ Lawyers USA, Jan. 1, 2007, at 1, “People are flocking to the Sunshine State in greater numbers than ever, seeking asset protection and a decrease in taxes.”

The article discusses the following reasons for Florida’s increasing popularity:

• No state income tax.
• No estate tax.
• No tax on intangibles, as of January 1, 2007.
• Homestead protection, even if (in many cases) it was purchased with the intent to defraud creditors.
• Homestead property tax protection.
• Non-estate planning reasons such as the weather.

To take advantage of Florida law, however, care must be taken because Florida has unusual rules regarding some estate planning techniques.  For example, trusts must have two witnesses.