Many New Yorkers spend part of the year in Florida to enjoy the warmer weather. These "snowbirds" often own homes in both states. While this can be rewarding, it also brings up important estate planning questions. One question we often hear from our Suffolk County estate planning clients is whether they should put their Florida home into a trust to protect them.The answer depends on several legal and financial factors, such as probate laws, taxes, and the details of your estate plan.
Owning property in more than one state can make estate administration more complicated after death. Setting up a trust the right way can help reduce these issues and make it easier for your property to go to your beneficiaries. However, it’s important to transfer your home into a trust carefully to avoid problems under both New York and Florida law.
We work with many snowbirds who maintain a primary residence in New York while owning a second home in Florida. We help many snowbirds who live mainly in New York but also own a home in Florida. Since we are licensed in both states, we can help clients coordinate their estate plans so their assets are protected and their wishes are followed.
Knowing how trusts work with both New York and Florida laws is an important part of this process. Putting a home into a trust is to avoid what is known as ancillary probate. Probate is the legal process through which a court validates a will and supervises the distribution of a deceased person’s assets.
In New York, probate proceedings are handled in the Surrogate’s Court under the New York Surrogate’s Court Procedure Act (SCPA). Under SCPA § 1402, a will must generally be submitted to the Surrogate’s Court in the county where the decedent was domiciled at the time of death.
If a New York resident owns real estate in Florida, however, the New York probate proceeding alone is not enough. Because real estate is governed by the law of the state where it is located, Florida courts may require a separate proceeding to transfer ownership of the property. This secondary proceeding is often called ancillary probate.
Ancillary probate can add time, cost, and administrative complexity. Families may need to hire attorneys in two states and deal with two court systems. For this reason, many snowbirds consider placing their Florida home into a trust.
How A Trust Can Help Avoid Ancillary Probate
A properly funded trust can allow property to pass directly to beneficiaries without the need for probate. When a home is transferred into a revocable living trust during the owner’s lifetime, the trust becomes the legal owner of the property. Because the trust continues to exist after the death of the person who created it, the property does not need to go through probate.
Under New York law, trusts are governed primarily by the New York Estates, Powers and Trusts Law (EPTL). For example, EPTL § 7-1.17 sets out requirements for the valid creation of lifetime trusts, including written documentation and proper execution.
When a Florida property is titled in the name of a trust that complies with these requirements, the successor trustee can typically transfer the property to the beneficiaries according to the trust terms without initiating probate in Florida.
For snowbirds who own property in both states, using a trust can make estate administration much simpler.
Coordinating The Trust With Your Overall Estate Plan
Transferring your Florida home into a trust can be helpful, but it should be part of your overall estate plan. The trust needs to work with your other estate planning documents.
In New York, wills are governed by EPTL § 3-2.1, which sets forth the requirements for valid execution. Many clients use a “pour-over will” that directs any remaining assets into the trust after death. This ensures that the trust serves as the central tool for distributing property.
It’s important to make sure the deed transferring your Florida home into the trust is prepared and recorded correctly. Mistakes in the deed or trust language can cause problems when the property is passed on to your heirs.
If you spend a lot of time in Florida, your estate plan should also consider residency and tax issues. New York has its own estate tax rules, which may still apply even if you own property in another state.
Florida Homestead And Asset Protection Considerations
Florida law gives special protections to homestead property. These rules can affect whether putting your home into a trust is the right choice.
For example, Florida’s homestead rules limit how a primary residence may pass to certain heirs and provide protection from certain creditors. If the Florida home is considered a homestead, the trust structure must be designed carefully to preserve those protections.
If you use your Florida property as a seasonal home instead of your main residence, you may have different things to consider. How the property is titled, how you use it, and where you are legally domiciled all play a role.
Because of these factors, you should always have an attorney who knows both New York estate law and Florida property rules review your plan before transferring a Florida home into a trust.
When Transferring A Florida Home Into A Trust May Make Sense
Many snowbirds choose to transfer their Florida property into a trust when they want to simplify estate administration for their families.
Common situations where this strategy may be appropriate include:
- Individuals who want to avoid probate in multiple states
- Couples who own property jointly but want a structured inheritance plan
- Families who want privacy because the trust administration is generally not part of the public record
- Property owners who want a smoother transfer of real estate to their children
However, every estate plan should fit the client’s goals. A trust that is right for one family might not be the best choice for another.
FAQs About Florida Homes And Trusts For Snowbirds
Can A New York Resident Place A Florida Property Into A Trust?
Yes, a New York resident can put a Florida property into a trust as part of their estate plan. The trust must be properly written, and the deed transferring the property must follow Florida real estate laws. Once the property is in the trust’s name, the successor trustee can manage or distribute it according to the trust’s terms. This approach is often used to avoid probate in both New York and Florida.
Will A Trust Automatically Avoid Probate In Florida?
In many situations, yes. When a property is owned by a trust rather than an individual, the property generally does not pass through probate at death. Instead, the successor trustee manages the property according to the instructions written in the trust document. However, this only works if the property was properly transferred into the trust during the owner’s lifetime. If the transfer was never completed, probate may still be required.
Does Transferring A Home Into A Trust Affect Property Taxes?
Usually, putting your home into a revocable living trust does not change your property taxes. You are still considered the owner. However, tax effects can vary depending on your situation. In Florida, some exemptions or benefits might be affected if the transfer is not done right, so it’s important to review the deed and trust carefully.
Can A Married Couple Put Their Florida Vacation Home Into One Trust?
Yes, many married couples use a joint revocable trust for their vacation home. This lets the surviving spouse keep control of the property and later pass it to children or other beneficiaries. The trust can also include instructions for managing the property if more than one heir inherits it.
Do Snowbirds Still Need A Will If They Have A Trust?
Yes. Even if your trust is the main part of your estate plan, you still need a will. A pour-over will makes sure that any assets not put into the trust during your life will go into the trust after you pass away. In New York, wills must meet the requirements in EPTL § 3-2.1 to be valid.
How Do I Transfer My Florida Home Into A Trust?
The process generally involves preparing a new deed transferring the property from the individual owner to the trust. The deed must then be properly signed, notarized, and recorded in the county where the property is located. Because Florida real estate law has specific requirements for deeds, the transfer should be handled carefully to ensure the trust owns the property correctly.
Speak With A Hauppauge Estate Planning Attorney
If you own property in both New York and Florida, your estate plan should address the legal issues that come with having assets in more than one state. Putting your Florida home into a trust can help make estate administration easier and protect your family from extra probate steps.
At Bernard Law P.C., we help snowbirds and Long Island families create estate plans that fit their unique needs. Our Hauppauge office works with clients across Suffolk County to coordinate estate planning strategies for property, taxes, and long-term family goals.
If you are thinking about putting your Florida home into a trust, we can review your situation and explain your options.
Call Bernard Law P.C. at (631) 378-2500 to schedule a free consultation. Our office is in Hauppauge, New York, and we proudly serve clients throughout Suffolk County.
If you have been named executor of an estate in Hauppauge or Suffolk County, contact our Hauppauge estate planning attorney at Bernard Law P.C. at (631) 378-2500 to schedule a free consultation.
