732.2095 Valuation of property used to satisfy elective share.—
(1) DEFINITIONS.—As used in this section, the term:
(a) “Applicable valuation date” means:
1. In the case of transfers in satisfaction of the elective share, the date of the decedent’s death.
2. In the case of property held in a qualifying special needs trust on the date of the decedent’s death, the date of the decedent’s death.
3. In the case of other property irrevocably transferred to or for the benefit of the surviving spouse during the decedent’s life, the date of the transfer.
4. In the case of property distributed to the surviving spouse by the personal representative, the date of distribution.
5. Except as provided in subparagraphs 1., 2., and 3., in the case of property passing in trust for the surviving spouse, the date or dates the trust is funded in satisfaction of the elective share.
6. In the case of property described in s. 732.2035(2), (3), or (4), the date of the decedent’s death.
7. In the case of proceeds of any policy of insurance payable to the surviving spouse, the date of the decedent’s death.
8. In the case of amounts payable to the surviving spouse under any plan or arrangement described in s. 732.2035(8), the date of the decedent’s death.
9. In all other cases, the date of the decedent’s death or the date the surviving spouse first comes into possession of the property, whichever occurs later.
(b) “Qualifying power of appointment” means a general power of appointment that is exercisable alone and in all events by the decedent’s spouse in favor of the spouse or the spouse’s estate. For this purpose, a general power to appoint by will is a qualifying power of appointment if the power may be exercised by the spouse in favor of the spouse’s estate without the consent of any other person.
(c) “Qualifying invasion power” means a power held by the surviving spouse or the trustee of an elective share trust to invade trust principal for the health, support, and maintenance of the spouse. The power may, but need not, provide that the other resources of the spouse are to be taken into account in any exercise of the power.
(2) Except as provided in this subsection, the value of property for purposes of s. 732.2075 is the fair market value of the property on the applicable valuation date.
(a) If the surviving spouse has a life interest in property not in trust that entitles the spouse to the use of the property for life, including, without limitation, a life estate in protected homestead as provided in s. 732.401(1), the value of the spouse’s interest is one-half of the value of the property on the applicable valuation date.
(b) If the surviving spouse elects to take an undivided one-half interest in protected homestead as a tenant in common as provided in s. 732.401(2), the value of the spouse’s interest is one-half of the value of the property on the applicable valuation date.
(c) If the surviving spouse validly waived his or her homestead rights as provided in s. 732.702 or otherwise under applicable law but nevertheless receives an interest in protected homestead, other than an interest described in s. 732.401, including, without limitation, an interest in trust, the value of the spouse’s interest is determined as property interests that are not protected homestead.
(d) If the surviving spouse has an interest in a trust, or portion of a trust, which meets the requirements of an elective share trust, the value of the spouse’s interest is a percentage of the value of the principal of the trust, or trust portion, on the applicable valuation date as follows:
1. One hundred percent if the trust instrument includes both a qualifying invasion power and a qualifying power of appointment.
2. Eighty percent if the trust instrument includes a qualifying invasion power but no qualifying power of appointment.
3. Fifty percent in all other cases.
(e) If the surviving spouse is a beneficiary of a trust, or portion of a trust, which meets the requirements of a qualifying special needs trust, the value of the principal of the trust, or trust portion, on the applicable valuation date.
(f) If the surviving spouse has an interest in a trust that does not meet the requirements of either an elective share trust or a qualifying special needs trust, the value of the spouse’s interest is the transfer tax value of the interest on the applicable valuation date; however, the aggregate value of all of the spouse’s interests in the trust shall not exceed one-half of the value of the trust principal on the applicable valuation date.
(g) In the case of any policy of insurance on the decedent’s life the proceeds of which are payable outright or to a trust described in paragraph (d), paragraph (e), or paragraph (f), the value of the policy for purposes of s. 732.2075 and paragraphs (d), (e), and (f) is the net proceeds.
(h) In the case of a right to one or more payments from an annuity or under a similar contractual arrangement or under any plan or arrangement described in s. 732.2035(8), the value of the right to payments for purposes of s. 732.2075 and paragraphs (d), (e), and (f) is the transfer tax value of the right on the applicable valuation date.
History.—s. 9, ch. 99-343; s. 25, ch. 2001-226; s. 7, ch. 2017-121.
