If you are involved in probate litigation, a Palm Beach probate, or Florida Homestead, you may want to read this probate appeal which was just handed down by the Florida Appeal court in West Palm Beach. It involves a Broward County deceased spouse, a deed into a QPRT (qualified personal residence trust) and inheritance rights of one’s homestead. This is a Florida homestead litigation case.
Quitclaim Deed of Florida Homestead to Irrevocable Florida Trust
- Florida homestead continues to be an almost sub-speciality to Florida probate law, providing much confusion for clients estate lawyers Palm Beach alike
- Richard & Norma were married
- 1993: Richard & Norma quit claim home (Florida Homestead) to Norma
- Same day , 1993: Norma signs Florida quitclaim deed transferring Florida Homestead to a Qualified Personal Residence trust
Qualified Personal Residence Trusts (QPRTs)
- QPRTs or qualified personal residence trusts are a means or a way to transfer your residence to a trust for certain family members and, if you outlive the initial term of the trust, you may get some estate tax savings
- There are a number of downsides to the QPRT including giving up ownership of theFlorida homestead which you place in the QPRT
- A QPRT is an irrevocable trust
- When Norma “quitclaimed” her Florida homestead to the QPRT, she no longer owned her residence: the trust did, and the trustee was then the legal owner under Florida law
- Remember: QPRT’s are a tax savings device or transfer
- US estate tax law or US gift tax law, what estate planning attorneys Boca Raton refer to as “transfer taxes”, is different than Florida property law or Florida inheritance rights
Family fights over Florida Homestead
- 2007: Richard passes away
- Norma wanted the Florida homestead to go to one of 5 children, Valerie
- 2010: Norma signs quitclaim deed seeking to convey the Florida homestead to herself and Valerie
- BUT Norma did not own the Homestead —-she gave away the Homestead in 1993 when she quit claimed the homestead to the QPRT
- The trustees of the QPRT owned the homestead: Norma’s deed to herself and Valerie was not valid: because Norma did not have anything to quit claim, she didn’t own the Homestead any more, and had not owned it since she gave it away in 1993.
- Evidently, the other kids did not like that deed to Norma & Valerie
- Enter the homestead litigators
- So, the other children sued their mom, Norman, and Valerie and the probate lawyer Broward County who prepared the quitclaim deed of the Florida homestead to the QPRT
- July, 2011: trustees of QPRT sue their mom, sisters and the attorney to set aside the 2010 quitclaim deed
- Norma tried to argue that her deed to the QPRT was invalid and she lost
Question: Do you want to read the entire October 29, 2014 legal opinion on this Florida Homestead litigation from Palm Beach’s 4th District Court of Appeal?
Answer: Go to this link: http://4dca.org/opinions/Oct%202014/10-29-14/4D13-1793.op.pdf
Question: want to see free Florida probate videos about suing family members in probate litigation in Florida & inheritance lawsuits?
Answer: http://www.youtube.com/watch?v=pbl1woLo2Jc&feature=youtu.be