In the Q&A below, estate planning attorney D. Rep DeLoach III answers some of the most common questions our firm receives about the Florida Community Property Trust.

What is the Florida Community Property Trust (FLCPT)? 

The FLCPT is a trust for a Florida married people with appreciated assets who would want to sell one of the assets upon the death of one spouse. Most importantly, couples benefit from a 100% step-up in basis for the trust assets upon the first spouse's death, which is unavailable under most circumstances.

Who Should Consider Creating a Florida Community Property Trust?

Consider an FLCPT if you:

  • Are married and in a stable relationship.
  • Own significant appreciated assets like stocks, real estate, or your homestead.
  • Seek income tax planning opportunities for asset sales, especially to benefit upon a spouse's death.

Can You Give Me an Example of the FLCPT?

A married couple bought a home for $200,000. The home is now worth $2,000,000. If they sold the home, they would have $1,300,000 in capital gains (minus the $500,000 exemption for homestead sale). If one spouse died without the FLCPT Trust, the surviving spouse would be able to sell and still have a large capital gain. If we place the home into an FLCPT trust, the surviving spouse can sell the home income tax-free! This applies not just to homes but any appreciated asset that the surviving spouse would likely want to sell.

What Do You Need to Create a FLCPT?

  • A declaration in the trust document that it is a Florida Community Property Trust.
  • At least one qualified trustee (a Florida resident or a qualified bank/trust company in Florida).
  • Signatures of both spouses.
  • Specific warning language in capital letters at the beginning of the trust document.

Contact Our Estate Planning Attorney for More Information

Still looking for more information on FLCPT? Check out the video at the top of the page and read our comprehensive guide to the Florida Community Property Trust.

To start working with an estate planning attorney at DHC, fill out our online contact form or call our office at 727.777.6842 to schedule a consultation.