If We Have Assets In Another State, How Will That Impact Our Financial Planning For Long-Term Care In Florida?
Under Florida law, if you’re a resident, your personal property is considered a Florida asset. For instance, if you set up a bank account at a small local bank in Iowa and you move to Florida, that Iowa bank account is actually considered Florida personal property. Now, if you own a condominium in Iowa, that’s real estate and it is considered an Iowa asset.
Long-term care planning in Florida, as it relates to out-of-state real estate, is not a complicated distinction. Florida long-term care planning laws will treat out-of-state property the same as it would in-state property. For example, income producing real estate in Florida is a non-countable asset for long-term care Medicaid planning. If you have a rental property in another state, as long as it’s considered rental property, it is exempt even though it’s not in Florida. The Florida Medicaid rules do not make a distinction for income producing property.
The distinctions with respect to out-of-state real estate are in the primary residence. For instance, somebody who lives in South Georgia and gets their care in the Northern Florida Panhandle will have protections extended to their home. In that case, the home will be protected in Florida. However, the ownership of that primary residence at death will be subject to the state laws where that property is located.
If you have out-of-state real estate, that’s where you want to consider an irrevocable living trust because you may have to do probate in Florida and in the state where the real estate is located. You will have to clear title to be able to handle that asset. If you have out-of-state real estate as a Florida resident, it’s very important to consider a revocable living trust for estate and long-term care planning.
We Have All Of Our Estate Planning Documents Done, But We Are Planning To Move To Florida When We Get Older. How Far In Advance Should We Start Redoing Our Plans?
Most topnotch clients and planers ask: when should we start our estate planning in the new state? Generally, this question will revolve around an unauthorized practice of law. A licensed Florida attorney can only practice Florida Law, unless they are licensed in another state.
If you’re living in South Carolina and want to move to Florida, but have yet to move all of your stuff, property, license, and car registration, then there is nothing you can really do at the time. If a Florida attorney were to do estate planning while you’re in still South Carolina, that attorney would be practicing South Carolina Law because you’re still a South Carolina resident.
However, if you decide to lay the groundwork, and work remotely with the Florida attorney, you’re certainly allowed to find the documents and finalize the language once you become a Florida resident, which could occur on the day that you close on your new Florida property and move your toothbrush into that new house.
The earliest you’d want to start considering redoing your estate plans would be when you put your house on the market to move to Florida. You can get things lined up, so once you make that final move to Florida, you can sign your estate planning documents about the same time you get your house situated. The main concept is that a Florida attorney cannot prepare estate planning documents for you unless you’re a Florida resident.
For more information on Elder Law In Florida, an initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (904) 398-6100 today.
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