Several legislative proposals and new laws have been introduced in Florida affecting Private Wealth. A brief summary of the 2024 changes follows.

Right-to-Know for Denial of Homestead Exemptions

Florida is one of a few states in the nation that allows for a property tax break for taxpayers who have a Florida home as their primary residence (otherwise known as a "homestead exemption"). To qualify for the homestead exemption, a taxpayer must annually file for such exemption with the Florida Department of Revenue.

As of July 1, 2024, if a property appraiser makes a determination that a taxpayer is not entitled to the homestead exemption from property tax, such appraiser must include with its determination information that (i) explains why the taxpayer is not entitled to such exemption; (ii) lists the years for which unpaid taxes, penalties and interest are due; and (iii) how the unpaid taxes, penalties and interest have been calculated.

Relatedly, additional legislation was passed, effective as of July 1, 2024, and applicable beginning with the 2025 tax roll, which provides that in instances in which a homestead exemption is granted because of a clerical mistake or omission by the property appraiser, the taxpayer will not owe any penalty or interest on the unpaid property taxes that are determined to be due. Additionally, if the taxpayer voluntarily discloses to the property appraiser that the homestead exemption was erroneously granted before the property appraiser notifies the taxpayer of the mistake or omission, no back taxes are due in connection with the unpaid property taxes.

Florida Uniform Fiduciary Income and Principal Act

The enactment of the Florida Uniform Fiduciary Income and Principal Act (FUFIPA) replaces the currently controlling Florida Uniform Principal and Income Act (FUPIA), which governs the default allocation of trust and estate receipts and disbursements between principal and interest for trusts and estates with a principal place of administration in Florida. This act, which goes into effect on January 1, 2025, is intended to modernize Florida's trust and estates law.

FUFIPA encourages the use of modern portfolio theory for investments by fiduciaries, which emphasizes capturing the total return on both income and principal appreciation. The fiduciary is also authorized to make adjustments between income and principal under certain circumstances, providing greater flexibility to fiduciaries to administer trusts for an extended term for the benefit of current and remainder beneficiaries. This is important considering the rule against perpetuities in Florida was extended in 2022 to a 1,000-year period. Such adjustments may also be made when administering a unitrust if such adjustments will assist the fiduciary in administering the unitrust in an impartial manner.

If a court determines that a fiduciary has abused their discretion in exercising the powers available to them under FUFIPA, the harmed beneficiaries are entitled to restore such beneficiaries to the positions they would have been in but for the fiduciary's abuse of discretion.

Supported Decision-Making

As of July 1, 2024, Florida now has authority allowing for supported decision-making by individuals with developmental disabilities who have not been adjudicated as incapacitated. The law provides for supported decision-making agreements that allow such developmentally disabled individuals to designate an agent to receive information and communicate on behalf of such individual with third parties but, unlike a durable power of attorney, does not allow the agent to make any decisions on such individual's behalf. This legislation is intended to benefit individuals who can live and work independently but may need some assistance with their decision-making without handing the ultimate control over a decision to a guardian or agent.