Tuesday, August 03, 2010

Florida Statute Helps with Estate Plans in 2010

On May 27, 2010, Governor Charlie Christ signed new Florida Statute 733.1051 into law, which, among other “fixes” to the estate planning laws in Florida, addresses a potential problem in the estate plans of Floridians created by the fact that there is no federal estate tax in effect in 2010. The law is retroactive back to January 1, 2010, and provides a judicial option for the beneficiaries of Floridians’ estates who die in 2010 and have an estate plan that relies on federal estate tax laws to fund AB Trusts or other types of estate plans.  Under the new law, the beneficiaries may seek a judicial modification of the estate plan for the deceased Florida resident. The law does not apply to estate plans that clearly anticipate no federal estate tax in 2010, and will become null and void at the earlier of such time in 2010 as the federal estate tax is reinstated or January 1, 2011.