As you prepare for your family’s future, you may be looking for strategic ways to maximize the assets you pass on to your heirs. Estate planning laws, which in Florida, are traditionally based on a separate property system, require skilled guidance to take full advantage of all available options.
An experienced trusts lawyer could help you understand and implement strategies that align with your financial goals. At Veliz & Associates, P.A., we help couples establish Florida community property trusts for people in Coral Gables, ensuring your documents are structured to provide maximum benefit while remaining compliant with state and federal laws.
Florida has enacted the Community Property Trust (CPT) Act, allowing married couples to opt into a community property system for assets held within a specific type of trust. This is a significant development in a common law state. The primary motivation for creating such a trust is to secure a double step-up in basis for the assets upon the death of the first spouse. In simple terms, when one spouse passes away, the total value of the trust’s assets adjusts to the fair market value at the date of death. This can dramatically reduce or even eliminate capital gains taxes if the surviving spouse decides to sell the appreciated assets.
This strategy is beneficial for couples with highly appreciated assets, such as real estate, stocks, or business interests. Our team in Coral Gables could help you understand the full scope of Florida CPTs and determine if this approach fits your financial profile. Proactive planning could shield your spouse from a significant future tax burden.
Establishing a CPT requires careful attention to legal details to ensure its compliance. It involves proper funding, clear documentation, and an understanding of how it interacts with your overall estate plan.
Only married couples can create a CPT, and at least one spouse must be a Florida resident. You must transfer and re-title assets into the trust to properly fund it. We offer guidance on this process to ensure your assets, whether real estate, investments, or other property, are correctly designated as community property within the trust.
A CPT should complement, not conflict with, your existing estate planning documents, including any wills, other trusts, or prenuptial/postnuptial agreements. We have extensive experience in creating cohesive spousal CPT strategies to ensure all your legal documents work together seamlessly.
While a CPT offers tax advantages, its implications for creditor protection may differ from other types of trusts.
Our Coral Gables attorney could also provide guidance on Florida CPT compliance, helping you maintain proper records to substantiate the community property status of the trust assets. This is vital for securing the intended tax treatment from the IRS.
At Veliz & Associates, P.A., we provide intelligent, forward-thinking estate planning to help you protect and preserve your assets. We translate complex legal concepts into clear, actionable advice, empowering you to make the best decisions for your family’s future. If you are interested in learning how Florida community property trusts in Coral Gables could enhance your estate plan and provide significant tax advantages, our team is ready to help you.
Secure your and your family’s financial future. Contact Veliz & Associates, P.A. today to schedule a confidential consultation and explore how a CPT could work for you.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917