How to Avoid Probate and Protect Your Boat in Florida

How to Avoid Probate and Protect Your Boat in Florida: Best Legal Strategies

By Jacqueline R. Bowden Gold, Broward Estate Planning Attorney

Owning a boat in Florida is a dream for many, but when it comes to estate planning, failing to properly title or protect your boat can lead to probate delays and legal issues. If you want to ensure your boat avoids probate and is also shielded from creditors, you need to plan ahead. In this article, we’ll explore the best legal strategies to keep your boat out of probate and protect it from liability.

Why Avoid Probate for a Boat in Florida?

Probate is the court-supervised distribution of assets after someone’s death. In Florida, probate is governed by Chapter 733 of the Florida Statutes. If your boat isn’t properly titled or transferred, your heirs could face:

• Delays – Probate can take months.

• Legal Fees – See Fla. Stat. §733.6171, which outlines personal representative and attorney compensation.

• Public Record – Probate filings are public under Florida law.

• Forced Sale – The court may order assets to be sold.

The Best Ways to Avoid Probate for a Boat in Florida

1. Transferring Ownership to a Revocable Living Trust

A revocable living trust, governed by the Florida Trust Code, allows you to transfer your boat to a trust while you’re alive and avoid probate when you pass away. Assets in a trust avoid probate and are best for privacy and efficient transfer without court involvement.

2. Using Joint Ownership with Right of Survivorship

Under Florida law, property owned as joint tenants with right of survivorship automatically passes to the surviving owner. Best for couples or family members who want a simple, probate-free transfer. See Fla. Stat. § 328.01 for boat titling requirements.

3. Can You Use a Transfer-on-Death (TOD) Title for a Boat in Florida?

Florida does not currently allow TOD registration for boats.

How to Protect a Boat from Creditors in Florida

Florida law does not protect boats titled in your personal name from creditors. Boats are considered non-homestead personal property, and are subject to creditor claims. Here are some tips to protect your boat:

1. Forming a Limited Liability Company (LLC) for Your Boat

Transferring your boat into an LLC offers limited liability protection. Florida LLC’s are governed by Fla. Stat. Chapter 605.

• Fla. Stat. § 605.0304 limits creditors to a charging order (not asset seizure).

• Title the boat in the LLC’s name, listing the LLC as owner.

Tip: Your revocable trust can own the LLC. The LLC protects the boat and the Trust avoids probate.

2. Placing the Boat into an Irrevocable Trust

An irrevocable trust offers superior asset protection, because you no longer legally own the boat.

• Governed by Fla. Stat. § 736.0505, which outlines creditor rights related to irrevocable trusts.

• Assets in a properly structured irrevocable trust are generally protected from both your creditors and the beneficiaries’ creditors.

3. Can a Boat Qualify for Florida Homestead Protection?

Florida’s homestead protection is outlined in Article X, Section 4 of the Florida Constitution, and it only applies to real property.

• Boats do not qualify for homestead exemption.

• Living on a boat does not entitle you to homestead protections under Florida law.

Note: If you are driving the boat and are involved in an accident you are likely to be sued in your individual capacity as the driver.

Combining Probate Avoidance and Asset Protection

The best method to achieve both goals is to combine an LLC (for asset protection) with a revocable living trust (for probate avoidance).

• Title the boat to an LLC

• Transfer LLC ownership to a revocable trust

• This avoids probate (Fla. Stat. § 733.707) and shields from liability (Fla. Stat. § 605.0304)

Is an LLC Necessary for Every Boat Owner?

No, but it’s highly recommended if your boat is, high in value, rented out and/or frequently used in activities with risk liability.

Final Thoughts

In Florida, the best way to avoid probate and protect your boat is by planning ahead:

• Use a revocable trust to avoid probate.

• Use an LLC for asset protection.

• Combine both to shield your asset and streamline its transfer. Need Help? Contact an experienced Florida Estate Planning and Asset Protection attorney to discuss your options. This article is intended for informational purposes only. It is important you consult with an experienced probate attorney. For more information contact attorney Jacqueline R. Bowden Gold at (305) 556-5209 or by email at JBowden@raricklaw.com.