Financial Planning & Asset Management in Florida: Protecting and PreservingYour Estate

When most people think of estate planning, their minds go first to wills and trusts. But just as important is financial planning and asset management — the lifeblood of your estate. In Florida, without proper alignment of your accounts, property, and beneficiary designations, even the most carefully drafted will can be undermined.

This post will explain what financial planning means in the estate context, why it matters under both Florida and federal law, and how to avoid costly mistakes.

 1. What Financial Planning Includes

Financial affairs in estate planning encompass:

• Bank Accounts & Investments – checking, savings, brokerage, CDs.

• Retirement Plans – 401(k), IRA, pensions (26 U.S.C. § 401(k)).

• Real Estate Holdings – primary residence, investment property, joint ownership.

• Insurance Policies – life insurance, long-term care.

• Business Interests – corporations, LLCs, partnerships.

• Debts & Liabilities – mortgages, loans, credit lines.

Each of these assets may pass after death differently as each asset has its owns rules for transfer.. Additional tax considerations should also be taken into consideration for each type of asset. Some assets should include a payable on death designation versus retitling ownership for tax purposes.  

2. Why Financial Planning Matters

Avoiding Intestacy. Without planning, Florida intestacy laws (F.S. §§ 732.101–732.111) determine inheritance. This default scheme may conflict with your wishes, particularly for blended families or unmarried couples. 

Reducing Probate Costs and Delays

If assets are titled solely in your name with no beneficiary designation, they must go through probate (F.S. Chapter 733). Probate can be time-consuming and public, exposing your finances to court records. Probate in Florida can take six months to two years, depending on the complexity of the estate. Personal representatives must marshal assets, notify creditors, and file court inventories (F.S. § 733.604). Court oversight means delays and expenses. Proper titling, beneficiary designations, and trusts can bypass probate entirely.

Tax Efficiency

While Florida does not impose a state estate tax, larger estates (up to $13,990,000 for 2025) may be subject to the federal estate tax (26 U.S.C. § 2001). Proper planning — such as using the marital deduction (26 U.S.C. § 2056), gifting strategies, or irrevocable trusts — can significantly reduce tax liability and preserve more wealth for heirs. 

Case Example

In Estate of Murphy v. Commissioner, 71 T.C.M. (CCH) 1674 (1996), improper planning led to unnecessary estate taxes because beneficiary designations were not coordinated with the decedent’s will.

Preventing Family Conflict

Financial disorganization often breeds disputes. When records are missing, debts are unclear, or beneficiary designations are outdated, heirs may accuse each other of wrongdoing. Litigation over estates can deplete assets faster than taxes ever would.

3. Beneficiary Designations

One of the most overlooked elements of estate planning is beneficiary designations. When in reality, beneficiary designations control many of your largest assets, including retirement accounts, annuities, and life insurance policies, which can all pass outside of probate by contract (pay-on-death POD or transfer-on-death TOD designations). These designations bypass probate and go directly to the named person. 

• Priority Over Wills: If your will names one person but your 401(k) names another, the plan beneficiary controls.

• Florida Statute: Spousal elective share rights may override certain designations (F.S. § 732.201).

However, if no beneficiary designation is chosen for these types of accounts, it will become subject to probate administration. Similarly, if an account beneficiary is not updated (after death, divorce, or other separation), the wrong or unintended beneficiary may inherit thereunder. 

Case Example: The U.S. Supreme Court upheld a beneficiary designation of an ex-spouse, not withstanding state law to the contrary. Egelhoff v. Egelhoff, 532 U.S. 141 (2001).

In Florida, the elective share statute (F.S. § 732.201) protects surviving spouses by granting them 30% of the estate — including certain non-probate assets. But this can create conflict if beneficiary designations do not align with overall planning and do not include accounts with alternative designated beneficiaries. 

4. Real Property

Property held in an individual’s name alone must go through probate. However, there are options to avoid this, which include (i) Titling in a revocable trust (F.S. § 736.0402), (ii) Joint tenancy with right of survivorship (F.S. § 689.15), and (iii) Lady Bird deeds (enhanced life estate deeds, recognized in Hirschenson v. Compu-Link Corp., 389 So. 3d 574 (Fla. 3d DCA 2023).

5. Business Succession Planning

Business interests often make up the bulk of a person’s wealth. Without a succession plan, the business may collapse or be sold for less than value under duress. Florida Law provides that LLC and partnership interests are subject to probate unless transferred into a trust or controlled by an operating agreement (F.S. § 605.0701).

Unclear succession terms in business can lead to costly litigation. However, business owners can benefit from estate planning strategies, including powers of attorney, trusts, and buy-sell agreements, which can be used in conjunction with one another to facilitate the transition of power, ownership, and assets, without the need of court intervention. 

6. Debt, Creditors, and Asset Protection

Financial planning should also address debts and creditor claims. Depending on the assets you hold, some may be exempt from creditors. For instance, the Florida Constitution, under Art. X, § 4, shields primary residences (homestead property) from most creditors. Other assets exempt from creditor claims include life insurance proceeds payable to a spouse or child (F.S. § 222.13).

In the event an estate is forced into probate, creditors must file claims within three (3) months of publication of notice to creditors (F.S. § 733.702). 

Proper planning ensures assets are structured to minimize tax and creditor exposure.

7. Growth Through Planning

Financial planning isn’t just defensive — it can grow an estate:

• Trust Management: Assets pooled in a trust can be invested collectively, producing rental income, dividends, or capital gains, in perpetuity.

• 1031 Exchanges: Investment real estate can be “exchanged” or tax-deferred under 26 U.S.C. § 1031, growing a property portfolio. Proper planning is required as there are rules that require strict timeline compliance to qualify. 

• Charitable Planning: Charitable remainder trusts provide income to heirs while reducing taxable estate value.

• Step-Up Basis: Under 26 U.S.C. § 1014, heirs inherit property with a “stepped-up” tax basis, reducing capital gains when sold.

7. Checklist: Financial Planning Steps

• Review beneficiary designations for retirement and insurance accounts.

• Retitle assets into your trust to avoid probate.

• Evaluate need for life insurance or long-term care coverage.

• Prepare a personal net worth statement.

• Meet with an estate planning attorney and financial advisor to align strategy.

In conclusion, financial planning and asset management form the engine of your estate plan. Legal documents provide structure, but without proper financial alignment, they cannot function. From avoiding probate delays to leveraging tax advantages, financial planning ensures your estate does not just survive — it thrives. In Florida, where homestead laws, elective shares, and creditor protections are unique, failing to align your finances with your plan can lead to costly, unintended outcomes. Proper financial planning transforms estate planning from a defensive exercise into a proactive strategy for protecting and growing your legacy.

Terra Sickler

Attorney; Twig, Trade, & Tribunal, PLLC

twiglaw.com