Condo living is part of the heartbeat of Miami. However, passing a condo to family can involve more than simply handing over the keys. Homeowners association (HOA) rules, unpaid assessments and Florida homestead laws can all affect what happens after an owner dies.
Planning ahead can make the transfer smoother and help loved ones avoid unexpected problems.
How can HOA rules affect the transfer?
Before an heir can take ownership of a condo, the association may require approval if its governing documents give it that authority. If those documents also allow a fee for processing the approval, the association may charge up to $150 per applicant under Florida law.
Therefore, owners should review the condo declaration and bylaws before making an estate plan. They should check whether the association requires approval for a transfer and what steps that process involves. They should also determine whether an authorized transfer fee may apply.
Money owed to the association also matters. Under Florida condominium law, a new unit owner can share responsibility with the prior owner for unpaid assessments that became due before the transfer. Special assessments can also create a large financial burden. As a result, owners should keep records of regular dues, special assessments and any amounts still owed.
How can Florida law affect the plan?
A Miami condo may qualify as a Florida homestead if the owner uses it as a primary residence and meets the legal requirements. If so, special inheritance rules may affect who can receive the property.
For example, Florida homestead law restricts how an owner can transfer homestead property at death when the owner has a surviving spouse or minor child. For this reason, owners should consider these restrictions before choosing how to pass down the condo.
One option is a will, which lets an owner state who should receive the property after death. However, a will generally does not keep the condo out of probate. The court may still need to oversee the transfer to the named beneficiary.
A Lady Bird deed, or enhanced life estate deed, can offer a different path. The owner keeps control of the condo during life and names a beneficiary to receive it at death. When properly prepared and legally appropriate, the deed can transfer the condo directly to that beneficiary without probate.
How can planning make the transfer easier?
Condo owners should review more than the name on the deed. They should also consider family circumstances, homestead restrictions, HOA requirements and unpaid assessments.
An estate planning attorney may help an owner determine whether a will, Lady Bird deed or another option fits the situation. Careful legal guidance may also help prevent a transfer plan from conflicting with Florida homestead rules or the condo’s governing documents.