Owning property in Florida and Minnesota can be a significant investment, but it can also create challenges regarding estate planning. Many people assume that having a Will is enough to cover their assets in both states, but that’s not how it works. If you own property in two states and only have a Will, your family will likely have to go through probate in both places—something that can be expensive and time-consuming.
The good news is that you can avoid this by setting up a trust. However, if your trust was originally created in Minnesota, it might not meet Florida’s legal requirements. This is where many people run into trouble, especially when it comes to keeping their Florida homestead protection. Accounting for these differences now can save your family a lot of hassle later.
How to Avoid Probate in Two States
Having a Will alone won’t keep your family out of probate court if you own property in Minnesota and Florida. Since probate happens in every state where you own real estate, your loved ones could end up dealing with two separate legal processes, doubling the time and cost of settling your estate.
The easiest way to avoid this is by creating a trust and ensuring all of your property is transferred. A properly funded trust allows your assets to pass directly to your beneficiaries without probate. But here’s where it gets tricky: if your trust was created in Minnesota, it may not be valid under Florida law unless it meets specific requirements. Florida requires two witnesses and a notary, and it also has unique language requirements to protect your homestead classification in Florida. If these details aren’t handled correctly, you could lose important tax and creditor protections on your Florida property.
What to Know About Florida Residency for Tax Purposes
If you’re splitting time between Minnesota and Florida, you might consider making Florida your primary residence to take advantage of its tax benefits—especially since Florida has no state income tax. But simply owning a home there isn’t enough to establish legal residency.
States use official and unofficial factors to determine where you live. Official factors include getting a Florida driver’s license, registering to vote in Florida, filing a declaration of domicile, and spending more than half the year there. Unofficial factors include where you receive mail, where your primary doctor is located, and where you do most of your banking and social activities. If Minnesota still considers you a resident, they could try to collect state income tax even if you claim Florida residency. A clear estate plan that aligns with your residency choice can help avoid unnecessary tax complications.
Final Thoughts
Owning property in two states can create extra-legal steps. With the proper planning, you can make things much easier for yourself and your family. A trust is the best way to avoid probate in Minnesota and Florida, but it must be set up correctly to work in both states. If your trust was created in Minnesota, updating it to follow Florida law can help ensure that you keep homestead protections and that everything transfers smoothly to your beneficiaries.
We can work with you to determine your goals for your planning and thencustom-tailor a plan that helps you achieve those goals and that works in both Florida and Minesota. Attorney Chuck Roulet is one of a few lawyers in the country licensed in both Minnesota and Florida, so you don’t have to worry about conflicting legal advice. Call 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.
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