How Life Insurance Fits Into Your Florida Estate Plan
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Life insurance is often the largest asset a young family leaves. Name beneficiaries carefully, use a trust when children or people with special needs will benefit, and avoid naming your estate. Florida law generally protects proceeds paid to a named beneficiary from the insured's creditors.
You don't need to be wealthy to need a plan
For many families, a term life policy creates the estate: money to pay off the mortgage, replace income and pay for college. How that money is paid out matters as much as the amount.
Choosing the beneficiary
- Spouse: simple, but plan for what happens if you die together or your spouse remarries.
- Minor children: avoid naming them directly. Amounts over $15,000 can require a court guardianship, and children receive everything outright at 18.
- Your revocable trust: lets your trustee manage the money for your family on the terms you set.
- Your estate: usually a mistake. The proceeds go through probate and can become available to your creditors.
Creditor protection in Florida
Florida law generally protects the cash surrender value of life insurance and annuities owned by a Florida resident (§ 222.14), and proceeds payable to a named beneficiary other than the estate are generally protected from the insured's creditors (§ 222.13).
Estate taxes
Life insurance proceeds are counted in your taxable estate if you own the policy. With the federal estate tax exemption at $15 million per person in 2026 and no Florida estate tax, most families don't need an irrevocable life insurance trust for tax reasons. Larger estates should still plan carefully.
Special needs beneficiaries
Leaving insurance directly to someone who receives SSI or Medicaid can end those benefits. Name a special needs trust instead.
Related: changing your life insurance beneficiary.
Talk with a Florida estate planning lawyer
Trusted Elder Law & Asset Protection helps families in Pensacola, Escambia, Santa Rosa, Okaloosa and Walton counties plan ahead. Call 850-607-2222 or schedule a free Peace of Mind Strategy Session.
This article is general information about Florida law, not legal advice for your situation.
