Series: Part 1 — Moving from Ohio to Florida? Three Important Considerations for Your Primary Residence
Moving from Ohio to Florida? While the warmer state might be an attractive option for those looking to escape the Ohio cold, it is important to understand the implications such a move might have on your estate. In Part 1 of a three part series, our Estate Planning, Trust & Probate Partner Jessa Gary lays out what you need to be mindful of when moving to the orange state.
Another snowy winter in Ohio is bound to send snowbirds south in search of warmer weather. That often results in clients moving permanently to Florida, where they can trade their fur-lined boots for beach sandals.
The move south may also yield a few welcome surprises when it comes to estate planning and taxes. In today’s article, I examine three key differences between the two states on exemptions for your homestead (primary residence).
No. 1: Your Florida homestead gets a much larger tax break than in Ohio. In Ohio, the homestead credit provides homeowners with a property tax exemption of up to $25,000 of the market value of their home. In Florida, an exemption of as much as $50,000 is permitted.
No. 2: Your Florida homestead is completely protected from Medicaid. When applying for Medicaid, Florida does not count your homestead as an asset. That means your property won’t be subject to a Medicaid-mandated spend down or sale. That is not true in many other states, including Ohio. Also, should a Florida homestead owner die while on Medicaid, the agency cannot come after the homestead to claw back payments. But in Ohio, if you are single and pass away while on Medicaid, they can place a lien on your property to recover any benefits paid on your behalf.
No. 3: Your Florida homestead cannot be given to just anyone upon your death. If you are married or have minor children, your Florida homestead cannot be given to someone else through a will or trust. In Ohio, you can do whatever you want with your homestead when you pass, including disinheriting your spouse if they are not on the title.