What Are Some Probate Scenarios When Beneficiaries Inherit Real Estate In Florida?

Real estate can create tricky scenarios with beneficiaries upon your death. First, there could be an issue if there are sentimental attachments to your property. Sentimental attachment can occur when you have a child or multiple children who have grown up in the house that you lived in. Seeing that property go to others could be a very big blow to someone’s emotions. Strongly consider devising a plan and strategy regarding your primary residence if multiple people feel emotional and sentimental attachments to it.

When people are attached, logic and reason may not ultimately triumph over emotions, so make sure that is deeply considered in your planning. Also, consider whether you have an adult child who hasn’t quite left the nest and is dependent upon you for their living. That child may develop a sense of entitlement to continue to live in your house upon your death to the exclusion of their siblings, even if that distribution would violate any notions of fairness. The entitled child problem will create a lot of disharmony amongst all other family members. Having a clear plan about how to treat this type of family situation needs to be strongly considered. We have seen instances where family members will essentially move in and squat, making it very difficult to have the house sold after you’ve passed away.

We’ve also seen dependent family members refuse to pay the taxes and insurance on the property that they’re occupying. The children who do this typically do not have steady employment or stable income and they need a place to live. This presents an opportunity to have a place to live at a low cost or no cost at all. If the non-dependent children are fairly non-confrontational, it could result in a disparity between who inherits your property.

The next real estate consideration is whether you have any rental property or investment related property. The biggest issue that comes with these properties is the timing of when to sell and when to hold. If you don’t select clear decision makers and leave reasonable instructions, there could be a disagreement between the child who wants to cash out now, versus the child who wants to let the investment grow, versus the child who wants to invest liquid assets to improve a real estate asset. The issue with whether to buy, sell, hold, or reinvest comes up with all sorts of properties, so it should be strongly considered.

Does It Matter If The Property Is A Residence Or Vacant Land?

If a property is a primary residence or dwelling, the sentimental attachment and the dependent child issues will come into play because the dependent child will find a place to live and the sentimental child would hate to see the property go. A vacant land issue is sometimes purely speculative. Vacant land may have been held with the hopes of future development running close to that vacant land, thereby significantly increasing the value. You need to be considerate with your directions regarding these types of assets. When you give a direction, it creates legally binding situations that all the parties have to submit to.

Can A Home Or Vacant Land In An Estate Be Sold Without Going Through Probate In Florida?

Land or property in Florida can avoid probate, if there are joint owners with rights of survivorship, a life estate deed, or if it is held in trust. Joint ownership with rights of survivorship can be between two people or between husband and wife, however where joint owners are non-spouses, the main issue arises when the deed does not specify rights of survivorship. Life estate deeds can be in traditional life estates or what is known in Florida as enhanced life estate, or a lady bird deed. The biggest difference between the two is Medicaid planning, where enhanced life estate deeds (lady bird deeds) are not viewed as a transfer of assets. Finally, holding your property in a revocable living trust can also avoid probate.

For more information on Real Estate Probate Scenarios 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.

Call Us Today
(904) 398-6100