Florida Supreme Court Overrules Fourth District Court
of Appeals Regarding Homestead Property in Will
The Florida Supreme Court recently ruled homestead property
that is not addressed in a specific bequest passes to the residuary beneficiaries
– not the general or specific beneficiaries – when the decedent
is not survived by a spouse or minor children.
Henry McKean, who had no surviving spouse or "minor"
children at the time of his death, made a bequest in his will for his nephew,
Peter Warburton to receive $150,000 in cash. Mr. McKean made additional
specific bequests, and also provided that his residuary (remaining) property
be left to his half brothers.
Mr. McKean had a condominium that qualified as a "homestead"
under Florida law thereby protecting it from forced sale. Unfortunately,
without selling the homestead, there were not enough funds in the estate
to fulfill Mr. McKean's monetary bequests.
Because enough cash was not available, the court was called
upon to determine who would receive the homestead property. Could it be
sold and the proceeds used to fulfill the monetary gift of $150,000 to nephew
Peter, or, should it pass as "residuary" property and be awarded
to Mr. McKean's half brothers?
In making its determination, the court relied heavily on ascertaining
the intent of the testator, and on Snyder v. Davis, 699 So.2d 999 (FL 1997).
Although the question posed to the court in Snyder differed from that of
McKean, the facts of the case were essentially the same. Additionally, the
court reviewed Florida law and determined, "nothing in the statutes
indicates that the protected homestead should be distributed as part of
the decedent's estate."
Thus the Florida Supreme Court ruled, since Mr. McKean had
not specifically stated his homestead could be sold and the proceeds added
to the estate, the sale of his property to generate funds to fulfill a cash
inheritance could not be forced. Consequently, the condominium passed as
residuary property to Mr. McKean's half brothers.
Source: McKean v. Warburton (FL Supreme
Ct., No. SC04-1243, 9-8-05)
|
