Question 1

What are the options for vesting title in Florida?

Accepted Answer

FL vesting options: sole ownership (one person holds title; the property passes through the owner’s estate at death), tenancy in common (TIC: two or more owners; each owns an undivided interest; interests can be unequal; no right of survivorship; each owner’s interest passes through their estate), joint tenancy with right of survivorship (JTWROS: two or more owners; equal interests; right of survivorship; must be expressly stated in the deed in FL), tenancy by the entirety (TBE: married couples only; right of survivorship; creditor protection: one spouse’s individual creditors cannot reach the property; Section 689.15), and trust ownership (the property is held by a trustee for the benefit of the trust beneficiaries; common for estate planning and asset protection).

Question 2

What are the tax implications of different vesting options in Florida?

Accepted Answer

Tax implications: sole ownership (the property receives a full step-up in basis at death for income tax purposes), TIC (each owner’s interest receives a step-up at their death: only the deceased owner’s share), JTWROS (the deceased owner’s interest receives a step-up: typically 50% for two owners), TBE (similar to JTWROS for married couples: the surviving spouse receives a step-up on the deceased spouse’s half), and trust (depends on the type of trust: revocable trust: full step-up; irrevocable trust: may not receive a step-up). FL: no state income tax and no state estate tax (but federal taxes apply). Documentary stamps: transfers between tenancy forms may trigger doc stamps unless exempt.

Question 3

How does vesting affect creditor protection in Florida?

Accepted Answer

Creditor protection: sole ownership (no special protection: individual creditors can reach the property subject to homestead), TIC (each owner’s interest can be reached by their creditors: a creditor can force a partition sale), JTWROS (each owner’s interest can be reached by their creditors during life: but the right of survivorship may defeat the creditor at death), TBE (strongest protection: one spouse’s individual creditors CANNOT reach the property: only joint creditors can; Section 689.15; this is one of the most significant benefits of TBE in FL), and trust (depends on the trust type: irrevocable trust: may provide strong creditor protection; revocable trust: no additional creditor protection). Homestead: provides additional creditor protection regardless of vesting (Article X, Section 4).

Vesting of Title

Title Vesting Options in Florida

Options

Tax Implications

Creditor Protection

Related Terms

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