Tax Strategy for Married Couples in Florida

We have received many inquiries about Community Property Trusts in Florida. Florida is not a community property state, but recent changes in the law have created a powerful opportunity for married couples to take advantage of community property benefits.

A Community Property Trust is a specialized estate planning tool that allows spouses to designate certain assets as “community property” for federal tax purposes. While this doesn’t change how assets are treated in divorce or under Florida property law, it can create significant tax advantages when one spouse passes away.

The primary benefit of a Community Property Trust is a full step-up in basis at the death of the first spouse. In a typical Florida estate plan, only half of a jointly owned asset receives a step-up in basis. This can leave the surviving spouse exposed to capital gains taxes if an asset is sold at a later date.

However, with a properly structured Community Property Trust, the entire asset receives a step-up in basis when the first spouse dies. For families with appreciated real estate, investment portfolios, or closely held businesses, this can translate into substantial tax savings.

Schedule an appointment with one of our knowledgeable attorneys to further explore how Community Property Trusts work in Florida, other important considerations, and ultimately if it is a good planning option for you and your family. Informed decisions matter and we are here to help.

We are honored to serve you from our South Jacksonville location at 13500 Sutton Park Drive South, Suite 601 or from our North Jacksonville location at 7308 North Main Street.