Transferring wealth & wisdom from generation to generation
Edward E. Wollman, JD, LL.M
Patrick Courville, J.D.
unintentionally disqualify them from essential support services. TOD designations can: - Bypass your trust provisions entirely - Expose assets to beneficiaries’ creditors or divorces - Create uneven inheritances against your wishes - Disqualify special needs beneficiaries from critical services In many cases, these issues can be avoided by retitling any brokerage and investment accounts into your revocable trust. This keeps your assets aligned with your estate plan while still avoiding probate in most circumstances. 4. After Major Life Changes, Your Plan Needs a Check-Up Estate planning documents are not “set it and forget it.” Even a well-drafted plan requires review as life unfolds. As we’ve seen with the previous pitfalls, significant assets can unintentionally pass to an ex-spouse or bypass intended heirs entirely. In Florida, beneficiary designations on assets like life insurance and retirement accounts take precedence over your will or trust. They are also not automatically revoked after divorce. It is critical to review your estate plan after: - Marriage or divorce - Birth or adoption of children or grandchildren - Death of a beneficiary or fiduciary - Large changes in asset value - Moving to Florida from another state - Changes in tax la w While this is a good starting list, we recommend reviewing your estate plan every three to five years. This helps ensure your plan remains aligned with your current wishes and with the changing law. 5. Adding Family to Your Deed May Do More Harm Than Good Florida’s homestead protection laws offer valuable tax and creditor protections. However, these benefits can be lost through well- intentioned but improper planning. Many clients assume that adding a child or others to their homestead property deed will be a future transfer. This misstep could lead to big consequences. In one case, a retired teacher added her daughter to her deed, but she was unaware that it could: - Trigger a taxable gift - Expose the home to her daughter’s creditors - Complicate her homestead tax exemption - Alter the cost basis, increasing capital gains liability later Fortunately, because it was caught in time, she was able to take advantage of Florida’s homestead benefits while still planning for future transfer, which includes:
- Enhanced life estate deeds (Lady Bird deeds) - A properly structured revocable trust - Letting the homestead pass through Florida’s probate system, which can be efficient and protective when done correctly 6. Tax-Free Help with Medical and Education Costs For families with estates approaching the federal estate tax threshold ($13.99 million for individuals or $27.98 million for married couples in 2025), there are valuable ways to transfer wealth that many overlook. One such strategy is direct payment for medical and educational expenses. When made properly, these gifts do not count against your annual exclusion or lifetime exemption when made properly. We work with many multi-generational families in Naples who use
this strategy to pay for: - Private school tuition - College or graduate school - Medical care and health insurance premiums
When payments are made directly to the institution and not to the individual, they are excluded from gift tax entirely. This is one of the most simple yet overlooked planning tools for clients looking to reduce their estate and support family members in a meaningful way. So, What Can You Do To Avoid These Challenges and Others? Things change. Your financial situation, family dynamics, business interests, and even the laws themselves rarely stay the same for long. On top of that, Florida has unique rules surrounding homestead property, probate, and asset protection, and those rules can shift over time. A thoughtful estate plan should be dynamic, adapting to your life changes. We like to think of an estate plan as an evolution. The most effective plans keep pace with your life and your legacy goals. Whether it’s the issues outlined here or others that surface during a thorough review, periodic evaluations often prevent unnecessary stress, expense, and unintended outcomes down the road. A thoughtful review now can prevent confusion, conflict, or unintended outcomes later.
Visit www.probate-florida.com to read more about this subject and other estate planning matters.
Ed Wollman is a Florida Bar Board Certified Attorney specializing in wills, trusts, and estates with over 35 years of experience practicing in the state of Florida.
Where Today’s Plans Become Tomorrow’s Legacy 2235 VENETIAN CT #5, NAPLES, FL 34109 (239) 435.1533 — (239) 435.1433 FAX
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