News, Updates and Notifications

2005 Florida Legislative Session Update

The Florida Legislature adopted the following laws in its 2005 session. These changes may be viewed on the Florida Legislature's website.

1. Dead Man's Statute Abolished.
   The Legislature abolished the so-called Dead Man's Statute which prevented individuals from testifying in certain situations to what the decedent had told them. See Florida Statutes Section 90.602.
2. Assets in all Benefit Plans Exempt from Levy.
   The assets in all retirement benefit plans are exempt from levy under Florida law. Query whether these exemptions apply in Federal Bankruptcy Court under the new Federal Bankruptcy Act recently passed by Congress. In the past, Individual Retirement Accounts were not exempt under federal law but certain qualified plans were. The new law places a limit of $1 million on the exemption for traditional and Roth IRAs. Qualified plans (e.g., 401(k) and 403(b) plans, SEPs and SIMPLE IRAs) enjoy unlimited exemption.
3. Uniform Disclaimer Act Adopted; Time Limit Abolished.
   There is no longer a time limit (nine months from date of death or event creating the right) within which to file a disclaimer. However, federal law still requires that a right be disclaimed within nine months if there is not to be any tax effect. See Florida Statutes Sections 689.21 and 732.801; and Internal Revenue Code Section 2518.
4. Florida Estate Tax Return Still Required but no longer any Florida Estate Tax.
   Beginning January 1, 2005, Florida no longer has any estate tax. However, if a federal estate tax return has to be filed (U.S. Form 706), a Florida return must be filed. See the Florida Department of Revenue website.
5. Florida Intangible Personal Property Tax Rate reduced to .5 mil.
   The intangible tax rate has been reduced to .5 mil. The current exemption is $250,000.
6. Viatical Settlements are now regulated investments.
   Viatical Settlements (the sale of life insurance on persons who are still alive) are now regulated investments.