Question 1

What is an irrevocable life insurance trust (ILIT) and does it make sense for a Springs-area family?

Accepted Answer

An ILIT is a trust designed to own a life insurance policy so that the death benefit falls outside the taxable estate. For families with estates approaching or exceeding the federal exemption — currently $13.99 million per individual under 2026 law, though subject to legislative change — an ILIT can preserve significant wealth for heirs. The trustee, not the insured, owns the policy. Premiums are funded through annual gifts using the Crummey notice process. Florida has no separate gift tax, making annual exclusion gifting to an ILIT relatively clean to administer.

Question 2

How do charitable remainder trusts work for Florida residents who want to give back?

Accepted Answer

A charitable remainder trust (CRT) allows a donor to transfer appreciated assets — real estate, securities, or closely held business interests — into the trust, receive an income stream for life or a term of years, take a partial charitable deduction in the year of contribution, and direct the remainder to a chosen charity. Florida has no state income tax, which means the income stream from a CRT flows to the beneficiary without state-level offset. CRTs are particularly well-suited for Springs residents who hold appreciated stock or a second property they wish to monetize without a large capital gains recognition event.

Question 3

My spouse and I own a vacation home in another state. Does Florida law govern that property?

Accepted Answer

No — real property in another state is governed by that state's law for title and probate purposes. If your vacation home is held in your individual names and you die, it will pass through ancillary probate in that state regardless of your Florida estate plan. The cleanest solution is to title the vacation property in a revocable living trust or, depending on the state, an LLC. Your Florida attorney should coordinate with counsel in the vacation home state or have reciprocal relationships there to ensure the out-of-state property is handled correctly.

Question 4

What is the difference between a durable power of attorney and a healthcare surrogate designation in Florida?

Accepted Answer

A durable power of attorney authorizes a named agent to manage financial and legal matters — signing contracts, managing bank accounts, handling real estate transactions — if you become incapacitated. A healthcare surrogate designation (Florida's term for a healthcare proxy) authorizes a named person to make medical decisions on your behalf. Both documents are governed by separate Florida statutes: Chapter 709 for powers of attorney, Chapter 765 for healthcare surrogates and living wills. Florida law requires both documents to be signed before two witnesses and a notary. They are distinct instruments and both are necessary for a complete plan.

Question 5

We have grandchildren. What trust structures are available for multi-generational wealth transfer in Florida?

Accepted Answer

Several structures are commonly used. A generation-skipping trust (GST trust) allows assets to benefit children and grandchildren while consuming only one application of the GST tax exemption. A dynasty trust, permissible in Florida for up to 360 years under Florida Statute 689.225, can hold assets across multiple generations with professional trustee management. 529 education savings plans with superfunding (five years of annual exclusion gifts in one year) are a simpler tool for education-specific transfers. Each structure has different tax treatment, trustee requirements, and flexibility provisions — the right choice depends on family dynamics, asset type, and the grantor's goals.

Estate Planning Attorneys in The Springs, Altamonte Springs

Vetted Estate Planning Attorneys Serving The Springs

Karen Estry, P.A.

Law Office of Cynthia E. McGee, P.A.

Estate Planning & Legacy Law Center, PLC

Murphy & Berglund, PLLC

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