Florida Community Property Trust

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Florida Community Property Trust

In 2021 the Florida Legislature enacted new laws that authorized the Florida Community Property Trust, which among other things, is designed to attract capital to the State of Florida. This type of trust is a very unique estate planning tool that allows the grantors to receive a double step up in basis at the first death. This is how it works.

Under normal circumstances, if a couple has a large investment with substantial unrealized capital gain, they often find themselves in a financial position that precludes them from selling the asset because of the large tax exposure. At first death the surviving spouse receives a 50% step up in basis, which helps reduce the tax burden but depending upon the size of the unrealized gain, it may still be infeasible to cash out of the investment.

Florida Community Property Trust, Venice Florida

Enter the Florida Community Property Trust.

If the same couple placed their investment into this type of trust at first death the surviving spouse receives a double step up or a 100% step up. The surviving spouse can then cash out of the investment with no long term capital gains. It would look like this:

Example #1

Florida husband and wife buy $100,000.00 investment as Tenants By the Entirety or JTWROS
Cost Basis of each person is $50,000.00
Investment increases to FMV of $600,000.00
Husband dies. Husbands cost basis is stepped up to $300,000.00
Wife sells property for $600,000.00
Wife’s new basis is $50,000.00 + $300,000.00 = $350,000.00
Wife’s realized taxable gain = $600,000.00 minus $350,000.00 = $250,000.00

Example #2

Florida husband and wife buy $100,000.00 investment as Tenants By the Entirety or JTWROS
Cost Basis of each person is $50,000.00
Couple transfer investment into a Florida Community Property Trust. (F.S. 736, Part XV)
Investment increases to FMV of $600,000.00
Husband dies. At 1 st death, investment receives a double step up, to $600,000.00. (IRS
Section 1014(b)(6), as allowed by community property state rules.
Wife sells investment for $600.000.00
Realized taxable gain = ZERO

FL Community Property Trusts

It is always wise to periodically review your Florida Community Property Trust with a knowledgeable estate planning attorney to ensure it aligns with your current financial goals and family dynamics. If it’s time to revisit your trust and explore its benefits, don’t hesitate to reach out to us for expert guidance.

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"Al and Amanda at Pandl Law were simply amazing to work with. I was the executor of my mother’s will and had absolutely no idea how to even begin the process of dealing with an estate, etc. It can be very overwhelming. They handled everything and made the process so much easier with their knowledge and guidance. Also, if I had any questions or concerns, they got back to me immediately."

K1124

"My husband and I were in need of help and advice quickly and Al went above and beyond in assisting with our needs. We highly recommend Pandl Law PLLC. Al is compassionate and knowledgeable about estate planning. My husband and I have peace of mind knowing that things are in order."

Jennifer Samuels

"Al Pandl with Pandl Law is a true caring professional. During the consultation he was able to explain in great detail how to set up my parents trust. I highly recommend him! "

Todd Christopher

"Al is an excellent attorney. He sincerely cares about his clients. "

Lydia Balderree

"We recently used Pandl Law Firm for some deed work and had a really good experience. They made the process feel a lot less overwhelming than we expected and explained everything in a way that was easy to understand. They were quick to respond whenever I had questions. Everything was handled professionally, and the paperwork was done accurately and on time. We would definitely use them again and would recommend them to anyone who needs help with estate planning. "

Jacque Hunter

"My husband and I appreciate attorney's Pandl knowledge and communication skills helping us to get exactly what we need to document our estate and POA. The price and service time was above the expectations. Thank you. "

Marina Rechitsky

"We had a great experience with Pandl Law for our wills and estate planning. Al and the entire staff were professional, prompt, genuine, and just overall easy to work with. We'd highly recommend!"

Kathy Guy

"Very helpful setting up our trust, throughly explaining all the ramifications. Highly recommend their services. Very nice new office."

Linda Kondorossy

"Estate Planning is probably not on your list of fun things to do today. We get it. At Pandl Law, we blend our legal experience with the relaxed South Florida lifestyle creating a comfortable environment to accomplish a difficult task. Let’s work through this together."

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Florida Community Property Trust

Estate Planning | Elder Law Attorney

Florida Community Property Trust

Florida Community Property Trust, Venice Florida

Enter the Florida Community Property Trust.

Example #1

Example #2

FL Community Property Trusts

Testimonials

"My husband and I were in need of help and advice quickly and Al went above and beyond in assisting with our needs. We highly recommend Pandl Law PLLC. Al is compassionate and knowledgeable about estate planning. My husband and I have peace of mind knowing that things are in order."

"Al Pandl with Pandl Law is a true caring professional. During the consultation he was able to explain in great detail how to set up my parents trust. I highly recommend him! "

"Al is an excellent attorney. He sincerely cares about his clients. "

"My husband and I appreciate attorney's Pandl knowledge and communication skills helping us to get exactly what we need to document our estate and POA. The price and service time was above the expectations. Thank you. "

"We had a great experience with Pandl Law for our wills and estate planning. Al and the entire staff were professional, prompt, genuine, and just overall easy to work with. We'd highly recommend!"

"Very helpful setting up our trust, throughly explaining all the ramifications. Highly recommend their services. Very nice new office."

Our Estate Planning Services

Estate Planning in Paradise

Wills

Estate Planning in Paradise

Revocable Living Trust

Estate Planning in Paradise

Asset Protection Trust

Estate Planning in Paradise

Special Needs Trusts

Estate Planning in Paradise

Florida Community Property Trust

Estate Planning in Paradise

Probate Attorney

Power of Attorney

Estate Planning in Paradise

Lady Bird Deeds

Estate Planning in Paradise

Pandl Law PLLC

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