Florida Community Property Trusts

Florida Community Property Trusts: Maximizing Benefits for Married Couples

A Florida Community Property Trust is a unique estate planning tool available to married couples that can offer significant tax advantages and streamline the distribution of assets. By establishing a community property trust, couples can classify their jointly held assets as community property, providing favorable tax treatment and ensuring that both spouses’ interests in the property are protected. This option allows Florida couples to take advantage of benefits that are traditionally available in community property states, even though Florida itself is not one.

At Warshofsky Law, we help couples utilize Florida Community Property Trusts to strengthen their estate plans and maximize tax benefits. This type of trust is particularly valuable for its step-up in basis feature, which can reduce or eliminate capital gains taxes when assets are sold after one spouse passes away. By classifying assets as community property, both halves of the property receive a stepped-up basis, potentially saving thousands in taxes for surviving spouses or heirs.

Why Consider a Florida Community Property Trust?

• Tax Benefits: One of the key advantages of a Florida Community Property Trust is the potential for both halves of the community property to receive a full step-up in basis upon the death of one spouse. This can significantly reduce capital gains taxes when those assets are sold.
• Asset Protection: This trust helps preserve the interests of both spouses by ensuring that their jointly held assets are equally shared and protected.
• Simplicity in Estate Planning: By holding assets in a community property trust, couples can streamline their estate planning, simplifying the transfer of assets to heirs while reducing the likelihood of disputes.
• Flexibility: Couples have control over which assets to place in the trust and can revoke or amend the trust at any time, ensuring it aligns with their financial goals and personal wishes.

How Does a Florida Community Property Trust Work? When a married couple creates a Florida Community Property Trust, they transfer ownership of selected assets, such as real estate, investments, and personal property, into the trust. The trust document specifies that these assets are treated as community property, giving both spouses equal ownership. Upon the death of one spouse, the surviving spouse retains full ownership of the assets, and the estate benefits from a full step-up in basis.

Customizing Your Florida Community Property Trust At Warshofsky Law, we ensure that your Florida Community Property Trust is carefully tailored to your specific financial situation. We work closely with you to select the appropriate assets for the trust and provide expert guidance on maximizing the tax and legal benefits available through this estate planning tool.

Maximize Your Estate’s Potential A Florida Community Property Trust can offer significant financial advantages and simplify your estate plan. To learn how this trust can benefit you and your spouse, contact the offices of Jason Warshofsky at 305-446-1244 or email Jason at Jason@WarshofskyLaw.com to schedule a consultation.