Estate planning laws are not the same in every state, and if you own property in Minnesota and Florida or have recently moved, it’s important to understand how the laws differ. Failing to plan correctly can result in unnecessary estate taxes, long probate processes, and gaps in long-term care planning.
Minnesota Estate Tax vs. Florida’s No Estate Tax
One of the most significant differences between Minnesota and Florida is that Minnesota has an estate tax, while Florida does not. But moving to Florida doesn’t mean you’re free from Minnesota estate taxes. If you still own property in Minnesota and your estate exceeds the tax threshold, your heirs may still owe Minnesota estate tax. This is why reviewing and updating your estate plan is critical if you have ties to both states.
Additionally, if you plan to return to Minnesota for long-term care because your family is still there, you will still need an estate plan that works under Minnesota law.
Long-Term Care Planning and Asset Protection
Long-term care planning is another area where Minnesota and Florida differ. In Florida, a revocable trust can help protect your assets and keep them out of probate. In Minnesota, however, a revocable trust does not protect from long-term care costs. Instead, Minnesota residents need a Medicaid asset protection trust to shield their assets from being spent down before qualifying for Medicaid assistance.
For those who have moved to Florida but still own property in Minnesota, estate planning must account for both states’ laws. You may need different trusts or asset protection strategies to ensure your estate plan works in both places. Without proper planning, your estate could be subject to probate and unnecessary expenses in both states.
Florida’s Different Legal Requirements for Estate Planning Documents
Florida has different execution requirements for estate planning documents, including Wills, trusts, and powers of attorney. If your documents were created in Minnesota, they may not fully comply with Florida law. Therefore, updating all legal documents to comply with Florida’s requirements is vital to ensure legal validity.
Additionally, updating your documents to Florida’s standards could be an official or unofficial factor in proving Florida residency for tax purposes. If you move from Minnesota but do not update your estate plan, it could be used as evidence that you are still a Minnesota resident for tax purposes, potentially leading to unintended tax consequences.
Final Thoughts
Estate planning laws in Minnesota and Florida are different. If you have ties to both states, you need a plan considering both. Protecting assets from long-term care costs, minimizing estate taxes, or ensuring your documents meet Florida’s legal requirements and having the right strategy in place can save your family time, money, and stress.
Roulet Law Firm, PA, helps individuals and families who split their time between Minnesota and Florida. As one of the few lawyers in the country licensed in both states, Attorney Chuck Roulet can ensure your estate plan works no matter where you live. If you would like to create an estate plan, or update an existing one, or have questions about the differences between Florida and Minnesota, contact us today at our Florida office at 941-909-4644 or our Minnetonka, Minnesota office at 763-420-5087 to schedule your consultation. Or you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
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