Although Florida is considered a non-community property state, Florida probate law does recognize that assets and the proceeds from those assets acquired by an individual while living in a community property state may retain their community property character. A estate planning attorney in Clearwater can explain if it is beneficial to retain the assets as community property and the issues that affect how such assets are distributed.
In addition to the actual assets that were acquired or became community property in a community property jurisdiction, a estate planning attorney in Clearwater emphasizes that the law also applies to:
- Assets acquired with the proceeds or income from community property, or
Assets that are traceable to community property.
A presumption is a fact that the law presumes, but which can be overcome by evidence to the contrary. Florida law presumes personal property acquired in a community property jurisdiction is community property, but real property located in Florida is presumed not to be community property, with some exceptions.
Distribution after the Death of the First Spouse
If an asset is deemed to be community property, then, upon the death of the first spouse, one-half of that asset belongs to the surviving spouse and is not subject to any testamentary disposition of the deceased spouse. The other-half is subject to the deceased spouse’s testamentary disposition.
The benefit for a surviving spouse in holding assets as community property is that under federal estate planning tax law, the entire value of community property receives an adjustment to a valuation as of the date of death. If the property was held as non-community property, the income tax basis of the deceased spouse’s property and only one-half of the jointly owned assets receive a date of death valuation.
Contact an Estate Law Firm in Clearwater for Legal Advice
It is possible to sever the community property nature of assets without intending to do so. It is important to have a clear understanding of the goals of the individuals and a complete knowledge of the complexities and nuances of the law. For all your estate planning planning concerns, call the Coleman Law Firm at 727-461-7474.