Estate Planning

Notice of ownership or control change now required in Florida transactions involving property

By David M. Goldman

Florida Statutes 193.1556 requires that any person or entity that owns property under Florida Statute 193.1554 or Florida Statute 193.1555.

This may affect some Florida Enhanced Life Estate Deeds. Under Florida Statute 193.1554(5), If the property is nonhomestead residential property, there is an exemption for the transfer between husband and wife, including transfer to a surviving spouse or a transfer due to a dissolution of marriage. The transfer to a revocable trust will not trigger a new assessment at fair market value.

On the other hand for all residential and non-residential property which is not protected by homestead there doesn't appear to be the same exemption under Florida Statutes 193.1555(5).

In either case the transfer to a Florida Revocable Trust where it there is simply a change between legal and equitable title, will not trigger a new assessment at fair market value.

One new issues is that it is now required to report a change in ownership or control when a business entity owns property. In the past, many were able to sell and entity and no notice to re-evaluate the taxable base would be generated. Now if you convert real property to personal property by selling the ownership in an LLC instead of the real estate holdings of the LLC, you still have to report the change in ownership.

To read more on Florida Enhanced Life Estate Deeds or Florida Revocable Living Trusts read some of the articles on this site or Contact a Jacksonville Estate Planning Lawyer

Full post as published by Florida Estate Planning Lawyer Blog on September 18, 2008 (boomark / email).