How Holding Assets in Another State Affects Your Florida Estate Plan

Attorney Kellen Bryant explains how out-of-state assets impact long-term care planning and estate planning for Florida residents.

Many Florida residents hold assets in other states—perhaps from where they previously lived, inherited property, or made investments. If you’re wondering how these out-of-state assets will affect your financial and estate planning, the answer depends on what type of assets you own and how Florida law treats them.

Understanding Asset Classification Under Florida Law

Florida makes an important distinction between personal property and real estate when determining how assets are treated for planning purposes.

Personal Property Follows the Owner

Under Florida law, if you’re a Florida resident, your personal property is considered a Florida asset regardless of where it’s physically located.

Example: If you set up a bank account at a small local bank in Iowa and then move to Florida, that Iowa bank account is actually considered Florida personal property for legal purposes.

This means Florida’s laws and planning strategies will apply to these assets, even though they’re held in another state.

Real Estate Follows the Location

Real estate, however, is different. If you own a condominium in Iowa, that property is considered an Iowa asset and will be subject to Iowa’s laws in many respects.

Impact on Long-Term Care Planning

The good news is that long-term care planning in Florida as it relates to out-of-state real estate is relatively straightforward.

Florida Treats Out-of-State Property the Same

Florida’s long-term care planning laws generally treat out-of-state property the same as in-state property. This creates consistency in your planning approach.

Income-Producing Property Remains Protected

One of the most important examples involves rental properties:

• In Florida: Income-producing real estate is a non-countable asset for long-term care planning
• Out of state: As long as it’s considered rental property, it receives the same exemption even though it’s not in Florida

Florida Medicaid rules do not make a distinction for income-producing property based on location—the protection follows the property type, not the location.

Special Considerations for Primary Residences

The rules become more nuanced when dealing with primary residences located outside Florida.

Cross-Border Protection

Florida extends homestead-like protections to out-of-state primary residences in certain situations.

Example scenario: Someone who lives in south Georgia but receives their long-term care in the northern Florida panhandle will have protections extended to their Georgia home. In this case, the home will be protected under Florida’s planning rules.

Estate Administration Complications

However, there’s an important distinction at death: the ownership transfer of that primary residence will be subject to the state laws where the property is located, not Florida law.

This can create complications for your heirs and may require additional legal proceedings in multiple states.

The Probate Problem with Out-of-State Real Estate

Here’s where out-of-state real estate can create significant challenges for your estate plan:

Multiple Probate Proceedings

If you have out-of-state real estate, your family may need to:

• Conduct probate proceedings in Florida (your state of residence)
• Conduct additional probate proceedings in the state where the real estate is located
• Clear title in each state to properly transfer ownership

This dual probate requirement can significantly increase:

• Time – Multiple court proceedings take much longer
• Cost – Attorney fees and court costs in multiple states
• Complexity – Coordinating legal proceedings across state lines

The Solution: Revocable Living Trusts

For Florida residents with out-of-state real estate, a revocable living trust becomes particularly important for both estate planning and long-term care planning.

How Trusts Solve the Multi-State Problem

When real estate is properly titled in a revocable living trust:

• No probate required – The trust owns the property, eliminating the need for court proceedings
• Simplified transfers – Assets transfer according to trust terms, not state probate laws
• Consistent management – One set of instructions governs all assets regardless of location
• Cost savings – Eliminates the need for multiple probate proceedings

Additional Benefits for Long-Term Care Planning

Revocable living trusts also provide advantages for long-term care planning:

• Streamlined asset management if you become incapacitated
• Easier coordination of care planning across multiple states
• Simplified Medicaid application process

Planning Considerations for Multi-State Assets

If you own assets in multiple states, consider these important planning elements:

Regular Review is Essential

• Law changes – Both Florida and other states may change their laws
• Asset changes – As you buy, sell, or inherit assets, your planning needs may shift
• Tax implications – Different states have different tax treatment for various assets

Professional Coordination

Complex multi-state planning often requires coordination between attorneys in different states, particularly for:

• Real estate transactions
• Trust administration
• Tax planning and compliance

Taking Action

If you’re a Florida resident with out-of-state assets, don’t let the complexity overwhelm you. While multi-state planning requires careful attention to detail, the right strategies can provide excellent protection and peace of mind.

The key is working with professionals who understand how different state laws interact and can create a coordinated plan that protects your assets and simplifies management for your family.

For comprehensive planning that addresses out-of-state assets, consult with experienced elder law and estate planning attorneys who can navigate the complexities of multi-state asset protection and create strategies tailored to your specific situation.