Estate planning in Florida isn't just about having a will: it's about navigating the state's unique laws while protecting your family's financial future. Unfortunately, many Florida families are making costly mistakes that could result in hundreds of thousands of dollars in unnecessary taxes, fees, and legal complications.
At Davies Wealth Management, we've seen these errors firsthand, and the good news is they're completely preventable. Here are the seven most common estate planning mistakes Florida families are making in 2025, along with practical solutions to fix them.
Mistake #1: Outdated Beneficiary Designations on Retirement Accounts
Your retirement account beneficiary designations trump everything else: including your will. This means your IRA, 401(k), or 403(b) will pass directly to whoever is named on those forms, regardless of what your carefully crafted estate plan says.
Here's a real scenario that illustrates why this matters: A Stuart businessman passed away leaving behind a $1.8 million IRA. His will clearly stated everything should go to his current wife and children. However, the IRA beneficiary form still listed his ex-wife from a divorce eight years prior. Florida law required the entire $1.8 million to pass to his former spouse, completely contradicting his wishes.
The Fix: Review all retirement account beneficiaries immediately. This includes IRAs, 401(k)s, 403(b)s, pension plans, and annuities. Update these designations within 30 days of any major life change: marriage, divorce, birth of children, or death of a beneficiary. Consider naming your trust as a beneficiary for certain accounts to maintain better control over distributions to your heirs.
Mistake #2: Using Out-of-State Estate Planning Documents
Florida has some of the most unique estate planning laws in the country. What worked perfectly in New York, Georgia, or Ohio might not hold up under Florida's legal requirements. For instance, Florida doesn't recognize handwritten wills that are valid in other states, and executors named in your old will may not qualify if they live outside Florida.
Additionally, trusts created in other states often need significant revisions to comply with Florida's specific requirements for trustee authority, beneficiary rights, and tax treatment. Using outdated or incompatible documents can lead to costly probate proceedings and family disputes.
The Fix: Have a qualified Florida estate planning attorney review all your documents after relocating to the state. This review should happen within your first year of residency to ensure your estate plan functions as intended under Florida law.
Mistake #3: Ignoring Florida's Unique Homestead Laws
Florida's homestead law provides powerful protection for your primary residence: creditors generally cannot force its sale. However, this same law creates strict limitations on how your home can pass after death. Your spouse or minor children typically have guaranteed rights to the property that cannot be overridden by your will or trust.
For example, you cannot simply leave your home to your adult children while your spouse is still alive: Florida law may override this decision entirely. This creates potential conflict between family members and can significantly delay probate proceedings.
The Fix: Work with an experienced Florida attorney to structure your home's distribution in compliance with state homestead laws. This might involve life estates, qualified personal residence trusts, or other specialized planning techniques that honor both your wishes and Florida's legal requirements.
Mistake #4: Failing to Properly Title Assets
How your property is titled determines how it passes at death, regardless of what your will says. Joint tenancy with rights of survivorship, tenancy by entireties, and trust ownership each have different implications for taxes, creditor protection, and estate administration.
For a $5 million estate, proper asset titling and estate planning can save $150,000 to $400,000 in taxes, fees, and administrative costs. Conversely, incorrect titling can trigger unnecessary probate, create tax problems, or leave assets vulnerable to creditors.
The Fix: Conduct a comprehensive asset inventory annually and review how each account, property, and investment is titled. Pay particular attention to real estate, business interests, and investment accounts exceeding $100,000. Ensure the titling aligns with your overall estate planning goals and Florida law.
Mistake #5: Inadequate Incapacity Planning
Estate planning isn't just about death: it's equally important to plan for potential incapacity. Without proper incapacity planning documents, your family may need to pursue costly and time-consuming guardianship proceedings if you become unable to manage your affairs. These proceedings typically cost $15,000 to $30,000 in legal fees and create ongoing administrative burdens for your family.
Many estate plans focus solely on death scenarios and neglect to address what happens during periods of illness or incapacity, leaving families without clear direction during already stressful times.
The Fix: Ensure your estate plan includes comprehensive financial and health care powers of attorney that comply with Florida law. Designate trusted agents who understand your wishes and can act effectively during emergencies. Update these documents if your chosen agents move away, become ill, or are no longer appropriate choices.
Mistake #6: Failing to Fund Your Living Trust
Creating a living trust provides significant benefits, including privacy, avoiding probate, and maintaining control over asset distribution. However, a trust is essentially worthless if you don't fund it properly. "Funding your trust" means retitling your assets into the trust's name: if you don't move your assets into the trust, the trust doesn't own them, and its terms won't control their distribution.
Without proper funding, your estate becomes subject to the costs and delays of probate, defeating the primary purpose of creating the trust in the first place.
The Fix: After creating your living trust, systematically retitle all significant assets into the trust's name. This includes real estate, bank accounts, investment accounts, and business interests. Work with your attorney and financial advisor to ensure the funding process is complete and properly documented.
Mistake #7: Not Updating Your Estate Plan After Major Life Changes
Life changes rapidly, yet most Florida families haven't updated their estate plans in over a decade. Marriage, divorce, births, deaths, relocations, and significant changes in wealth all trigger the need for review and updates. Failing to revise your plan after these events can lead to outdated instructions that no longer reflect your current circumstances or wishes.
Consider these real examples: A Jupiter retiree left his entire IRA to his ex-wife because he never changed the beneficiary after their divorce. Another client's will left assets to a deceased child but made no provision for stepchildren, leaving them with nothing despite years of close family relationships.
The Fix: Review your estate plan every three to five years, or immediately after any major life event. Even smaller changes: like opening new bank accounts, making significant investments, or purchasing property: should prompt a document review to ensure there are no gaps in your planning.
The Cost of Inaction
These mistakes aren't just theoretical: they have real financial consequences for Florida families. Improper estate planning can result in:
- Unnecessary federal and state estate taxes
- Lengthy and expensive probate proceedings
- Family disputes and litigation
- Assets passing to unintended beneficiaries
- Loss of privacy regarding your financial affairs
- Inadequate protection during periods of incapacity
Taking Action: Your Next Steps
Estate planning mistakes are entirely preventable when you know what to look for and take proactive steps to address them. The key is working with experienced professionals who understand Florida's unique legal landscape and can help you navigate these complexities.
At Davies Wealth Management, we've helped hundreds of Florida families avoid these costly mistakes through comprehensive estate planning strategies tailored to state law. Our approach integrates your estate planning with your overall investment strategies and retirement planning to ensure every aspect of your financial life works together seamlessly.
If you recognize any of these mistakes in your current estate plan: or if you haven't reviewed your documents in more than three years: it's time to take action. Don't let preventable errors jeopardize your family's financial security and peace of mind.
Ready to get started? Begin your comprehensive estate planning review today and take the first step toward protecting your legacy under Florida law.
Your family's financial future is too important to leave to chance. With proper planning and regular updates, you can ensure your estate plan works exactly as intended, providing security and peace of mind for generations to come.
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