Protecting Your Florida Vacation Home: Estate Planning That Preserves Your Peace of Mind

Owning a vacation home in Florida is a dream come true. Whether it’s a beachside bungalow, a cozy retreat in the Keys, or a lakeside rental you visit seasonally, that second home deserves just as much protection as your primary residence. Without proper estate planning, though, your beloved getaway could become a legal and financial burden for your family.

At The Soto Law Office, we help Florida homeowners—and out-of-state owners too—make thoughtful plans that safeguard their property, avoid probate, and ease the transition for heirs.

Why Estate Planning Matters for Vacation Homeowners

Many people assume their property will simply pass to loved ones after they’re gone. But without a clear estate plan, your heirs could face:

• Delays and costs from Florida probate

• Unwanted tax consequences

• Disagreements among family members

• Complications from owning property across state lines

Planning now helps ensure your home is transferred smoothly, according to your wishes.

Keeping Your Vacation Home Out of Probate

If your vacation home is titled only in your name, it will likely go through probate in Florida. This can be time-consuming and expensive, especially for non-resident owners.

Here are a few ways to avoid probate:

Revocable Living Trust By placing your vacation home in a trust, you allow for seamless transfer to your beneficiaries without court involvement.

Lady Bird Deed (Enhanced Life Estate Deed) Florida offers this unique tool that lets you maintain control of your property during your lifetime while allowing it to pass directly to your chosen heirs after death.

Joint Ownership with Rights of Survivorship This structure allows the surviving owner to automatically receive full ownership of the home. It’s common for family members but may not suit all situations.

Tip: If you live outside Florida, you may be subject to probate in two states unless you use a trust or Lady Bird Deed to simplify the transfer.

Choosing the Right Ownership Structure

How you hold title to your vacation home affects how it’s taxed, transferred, and protected.

Here are some options to consider:

Sole Ownership Simple but can lead to probate delays. A trust can help streamline the process.

Joint Tenancy with Rights of Survivorship Great for some, but not always ideal for blended families or business partners.

Limited Liability Company (LLC) If you rent out your vacation home, an LLC may offer liability protection and flexibility in transferring ownership shares.

Tip: Discuss your goals with an estate planning attorney to determine the best structure for your property.

Minimizing Taxes for You and Your Heirs

While Florida doesn’t have a state estate tax, your vacation home could still trigger federal estate tax or capital gains taxes for your heirs.

Strategies to consider:

Gifting the Property Over Time Use the annual gift tax exclusion to transfer interests in the home to family members while reducing the size of your taxable estate.

Qualified Personal Residence Trust (QPRT) Allows you to live in your vacation home for a set period while removing it from your estate for tax purposes.

Stepped-Up Basis When heirs inherit your property, they receive a new cost basis based on its market value at the time of your death, which can reduce capital gains if they later sell.

Preventing Family Conflict Over the Property

Vacation homes often carry sentimental value, which can lead to emotional disagreements if expectations aren’t clearly outlined.

Ways to prevent disputes:

• Include a vacation home agreement in your estate plan to clarify who inherits the property and how it will be used or maintained.

• Set aside funds in a trust to cover ongoing costs like taxes, repairs, and insurance.

• Define usage schedules, maintenance responsibilities, and buyout options if more than one heir inherits the property.

If your heirs don’t want the responsibility, consider selling the home and passing along the proceeds—or donating it through a charitable trust.

Special Considerations for Non-Florida Residents

If you live in another state or country, there are a few added complexities:

• You may be subject to ancillary probate unless you’ve used a trust or deed that avoids court involvement.

• Florida’s homestead exemption doesn’t apply to vacation properties.

• Non-U.S. citizens may need to consider U.S. estate tax obligations and reporting requirements.

  
  

Work with a Florida Estate Planning Attorney You Can Trust

Your Florida vacation home is more than just a piece of real estate—it’s a legacy, a memory-maker, and a valuable asset. At The Soto Law Office, we help you protect that investment with custom estate planning solutions tailored to your unique needs.

Whether you want to pass the home on to your children, rent it out through a business, or sell it tax-efficiently, we’ll guide you every step of the way.

Ready to start planning?

Call us today at (321) 972-2279

Let’s make sure your corner of paradise is preserved and passed on with peace of mind.