Investing in Tampa Real Estate as an Estate Planning Strategy
According to a recent report by BNN Bloomberg, Florida is becoming an increasingly popular location for real estate investment. The Sunshine State is attracting not only domestic investors, but also those located overseas. For many individuals, a real estate portfolio seems like a far more attractive estate planning strategy compared to typical retirement assets – including pensions. How can you integrate real estate investments into your estate planning strategy in Tampa?
Florida Remains Attractive for Foreign Real Estate Investors
Florida is becoming increasingly attractive for foreign real estate investors. A condo or house in Tampa may be one of the safest places to secure capital, and this is a common strategy for those in less stable nations. BNN Bloomberg states that many wealthy Mexican nationals are shifting their money toward Florida real estate due to concerns about rising taxation on the country’s highest earners.
Another attractive aspect of Florida real estate is the homestead exemption. If you choose to live in a Florida home as your primary residence, the value of your property is generally protected from creditors. Even if you sell your home and buy a new primary residence in Florida, creditors cannot intercept your money before the new purchase. This makes Florida a popular choice for estate planners with unresolved debt.
How Do I Put Florida Real Estate into My Estate Plan?
There are various options when integrating your Florida real estate into your estate plan. A popular choice is joint tenancy with rights of survivorship, which allows your co-owner (usually a spouse) to immediately “inherit” the home without any complex probate procedures.
Another option is to create a Lady Bird Deed. This involves giving one party sole ownership of the property – and the right to mortgage or sell depending on their unique goals. If they still owned the property at the time of their passing, however, the residence passes to a predetermined individual in a streamlined manner. This is a popular choice for parents who wish to leave their homes to their children.
You can also place your real estate into a revocable trust. In addition, you could put real estate in your Will – but this would require your beneficiaries to go through probate.
Is Real Estate Investment Better Than a Pension?
Due to skyrocketing real estate values, some estate planners question whether pensions and other “traditional” retirement strategies are even worth it. Why not invest in real estate instead? Ultimately, this is a question best left to financial planners. However, diversification usually makes sense from a financial perspective – and you could easily invest in real estate while keeping your pension.
Find an Experienced Estate Planning Lawyer in Tampa
An estate planning lawyer in Tampa can help you integrate your real estate portfolio into your trust or Will with confidence. If you are attracted by the prospect of real estate investments in Florida, be sure to contact an estate planning lawyer for additional insights. Even if you reside in a different state or country, it could be beneficial to get advice from a local legal professional. Reach out to Knudsen Law today to get started.
Sources:
- https://www.bnnbloomberg.ca/business/company-news/2024/07/25/miami-condos-lure-rich-mexicans-who-want-to-park-cash-overseas/
- https://www.nerdwallet.com/article/investing/estate-planning/lady-bird-deed
