If you own property in Florida but you’re not a year-round resident, your loved ones may face a complicated process after your death known as “ancillary” probate.
In essence, ancillary probate is a secondary probate process that’s required whenever someone dies owning real estate or other assets in any state other than the one that is their primary residence. It’s very common in Florida due to “snowbirds,” or retirees who routinely spend their winters in this state for its warmth and comfort.
Can you avoid an ancillary probate? Possibly. Here are two tactics to consider:
Establish a revocable living trust
In general, a revocable living trust is one of the most powerful tools you can use to avoid probate. You can create a trust and name yourself as the trustee during your lifetime, then transfer your Florida assets (and other assets, if you desire) into the trust. Once you die, the trust becomes irrevocable and the successor trustee you name takes over. Trusts and their contents are not subject to probate.
Use payable-on-death designations
If you have bank accounts or other liquid and semi-liquid accounts that you know you want to go to a specific person, you can use a “payable-on-death” (or “transfer-on-death” for certain investments) designation to make sure that happens. These designations leave you in full control of the assets until you die, but automatically pass them to the designated beneficiary immediately after.
These are only two of the possibilities for your estate plan – and they are not the only ones available. Talking over your estate goals with someone who understands the legal mechanics involved can make it easier to address all your concerns.