Month: August 2022

The Value of a Pet When Injured or Killed in Florida and Other States (An Overview)

Courts in various states follow different legal standards to decide how much a loss of a pet is worth, and whether pet owners are entitled to compensation for their emotional distress.

In the state of Florida, pets are generally considered personal property. Pets belong to a human individual and are the responsibility of that owner. Although one may feel as if their pet deserves the same treatment as a person, that does not mean that they are granted the same legal status as human beings under Florida law.

Bottom of Form

When someone is liable for an injury to one’s pet, that owner may become emotionally  devastated and angry. Most owners want to be and believe they should be compensated for their loss. If it is only a matter of a veterinarian’s bill to treat the injury, the amount of that loss should be relatively easy to calculate. HOWEVER, what would be fair compensation if one’s pet died, or the owner or family member had to watch it suffer? While most Americans treat their companion animals like members of the family, the law generally treats them like personal property. The rules or laws vary from state to state when people sue over a pet’s injury or death. Courts in most states limit the compensation to the owner’s economic losses. In cases involving deliberate or malicious wrongdoing, some states allow courts to award compensation for the owner’s emotional suffering or extra money as a form of punishment.

When a dog or cat or other pet has been hurt, the first expense is usually for veterinary/medical care. The person responsible for the injury will probably be liable for those bills. Courts usually allow compensation only for “reasonable” treatment. The question of what is reasonable depends on several factors, including the extent of the injuries and the animal’s age and general condition.

If the veterinary bills were particularly high for an older pet, some judges may find that the owner is entitled to no more than the amount of the animal’s fair market value. On the contrary, many courts have rejected that approach. For example, a Kansas court found that owners of a 13 year old dog were entitled to reimbursement for reasonable veterinary treatment needed to get their pet back to health. Another Illinois court explained that the owners of a 7 year old dachshund had shown how much their pet was of value to them by paying nearly $5,000 in medical bills after a neighbor’s Siberian husky mauled it. Accordingly, they were entitled to compensation for the full amount of the bills rather than only the dachshund’s $200 market value.

Whenever a pet has been injured, keep records of all bills for treatment, medication, and hospitalization to use during negotiations or at trial. An owner probably will not be paid back for the time they took off from work to care for the dog or take it to the veterinarian, but it cannot hurt to keep a record of that time if it has been extensive.

There are three different ways that courts generally measure an animal’s economic value: fair market value, replacement value, or the special value to the owner.

  • Like any other property, the fair market value of a pet is the amount that it would bring if it were sold on the open market. A few of the factors that go into calculating the market value of an animal include its purchase price, age, health, breed, and pedigree.
  • Some courts award pet owners what it would cost to replace the animals. The replacement value is probably higher than the market value because it can include things like training and accomplishments (such as winning awards at shows).
  • Periodically, an animal’s market or replacement value cannot be determined or does not reflect its true economic value based on its special services or usefulness to the owner. For example, in a case involving a prize-winning pedigreed dog, the court found that the animal’s value to its owner was $5,000, largely because the owner had spent a great deal of time and effort to give the dog specialized and rigorous training. The owner simply would not be able to find another dog like it on the open market. The court also considered the owner’s lost earnings from stud fees.

Because dogs or other animals kept for breeding are essentially business assets, their monetary value may include the lost potential revenue. However, judges may still stick to the replacement-value standard, reasoning that the owner can get another animal that will generate the same income.

Special value to the owner can be particularly relevant in cases involving assistance animals, which require extensive specialized training and become more useful to their owners the longer they work with them. Laws in a number of states specifically entitle the owner to collect extra penalties from the person responsible for killing or hurting a service animal, as well as reimbursement for the replacement cost and other expenses needed while doing without the animal’s assistance.

For most pet owners, whose pets do not win prizes or collect stud fees, the real value of their companion animals cannot be measured by what someone else would pay or what it would cost to buy a replacement. Lawmakers in several states have begun to recognize this fact. In Tennessee, pet owners may recover non-economic damages (up to $5,000 in 2017) as compensation for the loss of “companionship, love and affection” in certain cases when their pets have been killed intentionally (and illegally) or through negligence. Further, a few courts have found that sentimental value could be one element in an animal’s actual value to the owner if it does not have a meaningful market value. However, when judges recognize the sentimental value of pets, it is usually in the context of compensating the owner for out-of-pocket treatment costs that exceeded the pet’s market value.

To date, courts in most states, including Florida, follow the traditional view that owners are not entitled to recover non-economic losses for sentimental value or lost companionship when their pets are killed through negligence.

Some owners try to circumvent the limitations on compensation for the value of a pet by suing those responsible parties for their pet’s loss for the mental suffering the owners experienced. Whether they can be successful depends in part in which state they reside and the nature of the actions that led to pet’s injury or death.

Courts in most states do not allow claims for emotional distress when those responsible were simply negligent .  A damaged pet owner may have more success when the responsible party acted maliciously or meant to make the owner suffer, i.e., what is known as “intentional infliction of emotional distress”. In a particularly egregious case, a Washington appellate court found that a cat’s owner was entitled to $5,000 for the sleeplessness, depression, and other emotional distress that was experienced after three boys maliciously set the cat on fire.

Generally, pet owners can sue for two types of mental distress: first, the shock and distress caused by seeing an accident or mistreatment, and second, the grief and long-term effect the loss has on their lives. The more outrageous the conduct of the person being sued, the more likely the court is to award compensation for emotional distress, and the larger the award is likely to be. Proving mental suffering is not easy. Pet owners, however, can testify about how they felt when their pets were killed and how the loss disrupted their lives. If they sought medical treatment or psychological counseling, then it may strengthen the claims.

When a court orders someone who injured or killed a pet to pay the owner, that money is intended to compensate for the economic and, at times, emotional loss. In some states, courts may also award “punitive damages” intended to punish the wrongdoers for outrageous or deliberate actions. For example, California law specifically allows these types of awards, which are known in that state as “exemplary” damages”, for injuries to animals “committed willfully or by gross negligence” pursuant that state’s statute.

Punitive damages may be especially appropriate in animal cases, where compensation is likely to be low. A Minnesota court explained in a particular case that if compensatory damages do not make it worthwhile to sue, the wrongdoing will go unpunished unless there are punitive damages assessed. 

If asked, most owners would likely say their pet’s value is “priceless.”  In fact, a study by Kelton Research found that 81% of those surveyed consider their dogs, and other types of pets, to be true family members, on a par with their children. The death of a pet can be devastating to the human companion/owner, especially if the death is the result of a negligent or intentional act. In the legal world, however, a pet’s worth has been, for the most part, limited. 

Historically, the recovery for the death of a companion animal has been limited to a loss of property claim with damages calculated by the fair market value of the animal. For those of us with mixed breeds or older pets, which would mean they are literally worth nothing. 

This area of law is changing, however. A few courts have allowed juries to base a pet’s economic worth on other factors, such as special training, original purchase price, and cost to replace. These damages are known as “actual” or “intrinsic” damages.

In one case., the plaintiffs/owners sued their veterinarian and animal hospital, alleging the defendants (responsible parties) negligently administered anesthesia during a diagnostic treatment which resulted in the death of their pet German Shepard. The plaintiffs complained that because of the defendants’ negligence, they were deprived of the companionship, loyalty, security, and friendship of their dog. The trial court dismissed the case, ruling the law did not allow a pet owner to recover for loss of companionship. On appeal, the court agreed with that ruling, stating that pets are an item of personal property. However, the court also recognized that some items of personal property have no market value, such as pets, heirlooms, photographs, and trophies. The court held that where an object which has no value is destroyed, the measure of damages to be applied is the value to the owner. 

Other state courts have recognized the sentimental value of pets to their owners. In LaPorte v. Associated Independents, Inc., 163 So. 2d 267 (Fla. 1964), the Florida Supreme Court upheld a $1000 punitive damage award to the owner of Heidi, a miniature dachshund who was killed when a garbage collector, maliciously, and with extreme and utter indifference threw a garbage can at her. The court held that the affection of an owner for their dog is a very real thing, and that the malicious destruction of a pet should allow for recovery of damages beyond the value of the animal.

However, a Florida appeals court has refused to expand the law to allow emotional distress damages in a veterinary malpractice case where there was “no impact.” The impact rule requires some form of physical impact prior to recovery of emotional distress damages. In Kennedy v. Byas, 867 So. 2d 1195 (Fla. 1st DCA 2004), the owner of a basset hound sought emotional damages for veterinary malpractice in the treatment of his dog. The appeals court refused to allow the damages, stating that it would not abandon the impact rule and allow emotional damages in veterinary malpractice cases. It cited some earlier contrary decisions but ruled otherwise, i.e., Johnson v. Wander, 592 So. 2d 1225 (Fla. 3d DCA 1992), which was a veterinary malpractice case where, as in the foregoing case, the trial court entered a partial summary judgment on the claims for damages for emotional distress and subsequently granted a motion to change the case from circuit court to county court due to the lower jurisdictional amount sought in the claims remaining. In that case, the Third District held that a jury question was presented on the issues of gross negligence and mental pain and suffering as claimed by the dog’s owner and the trial court improperly transferred the case to county court as being a claim for less than the circuit court jurisdictional amount. In Knowles Animal Hosp., Inc. v. Wills, 360 So. 2d 37 (Fla. 3d DCA 1978), the Third District specifically held that a dog owner was entitled to collect for emotional damages in a veterinary malpractice case. 

Many state courts have been reluctant to allow non-economic damages.

The courts have instead deferred to their respective legislatures to step in and enact laws on damages in pet cases. Tennessee as the first such state to enact legislation. Known as the T-Bo Act, the Tennessee legislation allows for non-economic damages for the negligent, intentional, or unlawful act of another or animal of another. It limits recovery to cases involving cats or dogs and the cap on damages is $5000. 

An Illinois’s statute limits claims for cases in which the defendant subjected the animal to aggravated cruelty or torture or engaged in bad faith which led to the animal’s death or injury. The law applies to any animal to which the plaintiff has a right to ownership, not just cats and dogs. Therefore, a horse owner would have an avenue of recovery. However, damages are limited to $25,000 for each act of cruelty. Attorney’s fees and costs can be recovered under the statute.

Connecticut then followed suit with its own statute, but it is much more limited as to recovery. It only allows recovery in situations where the act was intentional and is limited to cats and dogs. The statute does not allow for emotional damages for owners, but instead names types of economic damages that may be recovered and allows for punitive damages. Attorney’s fees are allowed for a prevailing human companion. 

Other states have followed with their own legislation. California and Montana have enacted statutes which allow for exemplary damages in cases of willful or gross negligence. Maryland allows for compensatory damages in cases where the defendant tortuously causes death or injury to a pet. The damages are limited to $7,500.

A court decision exists in Florida, in a divorce context, where a court addressed the issue of pets in divorce. In the case of Bennett v. Bennett, 655 So. 2d 109 (Fla. 1st DCA 1995), the First District Court of Appeal defined the family pet as personal property and rejected a trial court’s order that provided post-divorce visitation for the parties’ dog, including a weekend visitation schedule and every other Christmas holiday. Consequently, the court recognized that post-divorce custody and visitation issues would lead to continuing enforcement issues. Although the court recognized that some other states have provided pets with special status in divorce proceedings, the Florida court declined to extend such protections to Florida pets. In refusing to provide any special considerations or status to pets in divorce, the court also recognized the substantial burdens placed on the Florida court system associated with post-divorce enforcement of child support and visitation matters in regular human custody cases. Accordingly, the subject pet’s fate was dictated by an application of equitable distribution principles that defined its existence as personal property, affording no special consideration of the pet’s interests. While the trial court was trying to reach a fair solution under difficult circumstances, the appellate court made clear that pets are animals not subject to a best interest analysis and that their fate must be resolved by following the dictates of Florida’s equitable distribution formula. The personal property calculation taken in conjunction with the court’s rejection of a pet’s “special status” in a divorce would appear to limit the trial court’s authority to take noneconomic valuation testimony about potential harm or abuse to the said pet. The lack of other reported court decisions in Florida makes it difficult to discern the court’s intent in Bennett beyond the prohibition of pet visitation awards.

Bills have been introduced in many other states over the years but have had little success. Legislators appear to be reluctant to change the status of pets as property and potentially open the flood gates for more litigation in both the national and state court systems.

If you or your pet have been injured because of the negligence or malice of others or have any questions regarding the foregoing or want to discuss any other legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

Capacity to Make a Will or a Power of Attorney in Florida-Part 2

 A Power of Attorney is a powerful legal document or instrument which delegates in writing authority from one individual to another. The creator of the power of attorney, also known as the “Principal,” grants the right to act on their behalf to an “Agent.”  A Power of Attorney can be specifically prepared to expand or restrict delegated enumerated powers based on the wishes of the subject Principal. The benefit of having a Power of Attorney is that it can be used to avoid the need for a court supervised Guardianship should the Principal become incapacitated and no longer have the ability to manage their own financial affairs and property management as well as medical decisions.
   
One of the most common questions encountered is, “when does the Power of Attorney actually takes effect”?  In the past, Florida allowed for the execution of what was referred to as a “springing” Power of Attorney. The term springing refers to the fact that an Agent is only permitted to act upon the satisfaction of a condition. For example, a springing Power of Attorney could be conditioned to only become effective upon written confirmation that the Principal was incapacitated. This type had a notable feature in that it allowed individuals to give a Power of Attorney to a relative without having to worry about them accessing a bank account or transferring property while the Principal still maintained full capacity. Unfortunately, changes in Florida law resulted in the abolition of springing Powers of Attorney. Currently, when a person executes a Power of Attorney the Agent is immediately granted the power to act regardless of whether or not incapacity exists.

Consequently, since Agents have immediate authority to act, the Principal grant the power to only a person they trust completely! Further, discussions should be had with the prospective Agent so they understand the Principal’s wishes as to how their affairs should be handled or managed. Any additional questions should be directed to an experienced estate planning attorney.

Preparing a Durable Power of Attorney for financial matters and a Healthcare for medical decisions are part of a responsible estate plan.

Now, what is the level of capacity that is needed to create a Last Will & Testament?  The person making the Last Will & Testament (Last Will) must has sufficient capacity to comprehend:

  • the nature and extent of his or her property (i.e., what are the assets and their relative size);
  • his or her relationship to the persons who were, or should, be the natural objects of his or her estate; and
  • a general understanding of the effects/process of the Last Will.

Florida courts have said that the person making the Last Will must have sufficient active memory to collect in their mind, without prompting, the particulars or elements of the business to be transacted, and to hold details in their mind for a sufficient length of time to perceive at least their obvious relationships to each other, and be able to form some rational judgment regarding them. A testator/testatrix (maker of the Last Will) who has sufficient mental power to do the foregoing is, within the meaning and intent of the Statute of Wills, a person of sound mind and memory, and is competent to dispose of their estate by a Last Will.

The foregoing can also extend to a Revocable Living Trust. With the above test, a person must know what their assets are and the people to whom they would most likely want to leave those assets. And, just as important, the individual should understand the effects of their Last Will or Trust. Practically speaking, creating a Revocable Living Trust may be more complicated than creating a Last Will, so it may be argued that the capacity to create a Trust is a higher standard than that of creating a Last Will. 

Again, there are other legal standards of capacity. After testamentary capacity, there are generally three (3) other areas of capacity in the Estate Planning and Elder Law area:

Some Florida families become extremely concerned when their loved one is having health issues and may be at the end of their life. However, if a loved one dies without a Last Will, their assets will  go to their family under Florida state laws of Intestacy or next of kin.

If it is uncertain whether a person has capacity to create a Last Will, an experienced attorney may be needed to assist in documenting the individual’s capacity to make a Last Will. At times, a physician is used to write a letter or report as to capacity, if the attorney is still unsure.

Finally,  under section 732.501, Florida Statutes, “Any person who is of sound mind and who is either 18 or more years of age or an emancipated minor may make a will.” Further, a Power of Attorney can be signed in Florida any time someone has the required capacity, i.e., so long as the individual signing the Power of Attorney is over 18 years of age, understands the powers they are delegating, knows to whom they are entrusting the said powers and how delegating that power can affect the property or person subject to the Power of Attorney, they then have the capacity needed to sign the subject Power of Attorney.

Even when there are times when the same individual may not have the capacity as described herein,

there are times when a person can make their own decisions. These are referred to as “lucid moments.” During a lucid moment, as long as the person comprehends the powers they are delegating, to whom they are delegating them, and how delegating those powers can affect their property or person, they may be able to sign a Power of Attorney or a Last Will if they are capable of understanding the significance and effect of executing a Last Will and the extent of their property and to whom they are distributing their assets after death.

Pursuant to Florida case law, whether or not a maker or creator of a Last Will, Trust, Durable Power of Attorney or Healthcare was of sound mind or had the capacity is determined at the time the subject document or instrument was executed.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

Capacity to Make a Will or a Power of Attorney in Florida-Part 1

With millions of people having a form of dementia across the U.S. and the world, Estate Planning attorneys need to assess their potential clients to ascertain whether they are still capable and should be given the opportunity to contribute to and have input in their own lives as well as the lives of those around them. It is important to understand their changing needs as their disease advances, but even those with the most severe cases can still take part in an important way in the world around them.

The term “lucid intervals” comes into play. These intervals are moments of clarity for people with degenerative brain diseases. In these moments of clarity, they may regain many of their memories and mental functions. It is important to not only recognize these moments but also to give them credence.

There is a study by the National Library of Medicine, which goes into the various levels of capacity people may exhibit and ultimately states that “Capacity to make one’s own decisions is fundamental to the autonomy of the individual.” Consequently, there should be a plan for the moments when capacity improves or stabilizes.

There are varying levels of capacity for those with degenerative brain diseases, and medical professionals and loved ones should play a role in recognizing those levels of capacity without bias.

For example, “sundowning” is the process of medical or psychological conditions worsening as the day goes on, which is essentially named for the time period when the sun goes down or after dusk. If a loved one experiences sundowning, should decisions made earlier in the day during the more “lucid” period be invalidated because of a later lack of clarity?

Florida families need to empower their loved ones by providing them with the proper channels to express themselves and contribute to their own lives. Awareness should be raised on the abilities the elderly adult or loved one retains while battling any form of dementia.

After a diagnosis of Alzheimer’s disease or another type of dementia, a family has much to process and consider. In addition to dealing with the emotions that reasonably flow from this diagnosis, families must also make arrangements with the diagnosed elder adult in order to make plans for their current and future needs.

This situation can appear over-whelming, however, it is crucial that a family uses the early stages of the disease to fully understand the diagnosed elder adult’s wishes and get their input for moving forward.

It is much easier for everyone to be on the same page regarding a Power of Attorney as well as a Last Will and/or Advance Directives long before it or they become necessary because obtaining said Power of Attorney as well as other documents when the elder adult in question is already well into the disease process is more time consuming and difficult.

 

A Power of attorney is a legal document which allows someone to act on behalf of someone else regarding healthcare or financial decisions. There are many types of powers of attorney, each of which serves a unique or specific purpose. However, a Durable Power of Attorney is the most common for elderly adults.

Selecting who has Power of Attorney is a weighty decision. By Florida law, the person who is selected is called the Agent. This person should be a trustworthy and competent adult who is willing and able to manage complex medical and financial decisions and responsibilities on behalf of the diagnosed or incapacitated adult (the Principal). A financial institution that has trust powers [like a bank or trust company], so long as it has a Florida location and is authorized to conduct business in the state of Florida, can also be named an Agent.

At times, families choose to split power of attorney duties so that no one person is in charge of every decision. In these cases, they divide duties into healthcare decisions and financial decisions, creating two powers of attorney, one for each category.

Ideally, elders or any adult planning on a power of attorney should name their trusted Agent and have the papers drawn up and executed prior to any medical crisis, including a dementia diagnosis. However, if a loved one has not yet been diagnosed with dementia, those family members together with the subject adult can work together to name an Agent and execute a valid the power of attorney.

In general, a person with dementia can sign a power of attorney if they have the capacity to understand what the document is, what it does, and what they are approving. Most seniors living with early stages of dementia are able to make this determination.

If there is no power of attorney designation, and the older adult is further along in the disease’s process, the matter can get more complicated. If an older adult is unable to understand the power of attorney document and process, the family will need to enlist the aid of the local court whereby a judge can review the case and grant someone in the family (or a court appointment) the designation of conservator or Guardian. A conservatorship or guardianship allows the person or public guardian named by the court to make decisions about the person’s finances or other decisions. A guardianship allows the person named by the court to make decisions about the person’s healthcare. This procedure may be burdensome but can become necessary and may be the only way to advocate for a loved one and their wishes.

The Article will continue at a later date!

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

DEATH & FIREARMS IN FLORIDA (A General Overview)

Florida has a growing number of lawful gun owners. These firearms may include antiques, rifles for hunting, and handguns for personal protection. While these owners may be careful to ensure they have the correct registration, license and storage during their lifetime, their firearms raise questions when they die. When acting as the Personal Representative (PR) for that person’s estate during probate administration, then it is up to the said PR to ensure these items are handled carefully and within the law.

The following is a general overview of the subject. Specific cases should be discussed with an Estate Planning Attorney experienced with the state & federal laws regarding firearms.

A Personal Representative (in some states-Executor) in charge of a decedent’s estate may not be able to simply give a beneficiary a firearm as stated in the deceased’s Last Will & Testament. There are situations in which the heir’s or beneficiary’s possession of the gun may be illegal, e.g., if they are a convicted felon. The same can be said for the Personal Representative’s (PR) possession of the firearms. The PR is not exempt from the law because they are acting on behalf of an estate. If the PR is not entitled to possess a gun, they should promptly contact an attorney about ensuring the firearms are stored in a lawful place during the probate process.

As a Personal Representative, carefully review the decedent’s estate planning documents, including whether they have a Gun Trust, and speak with a probate attorney experienced with Firearms law before doing anything with the decedent’s firearms. Numerous federal and state laws regulate the sale or transfer of firearms, making the gifting process complicated. If the PR transfers a gun improperly or to an unlawful owner, the said PR could violate the law. Also, if the decedent did not plan for how their guns were to be handled, the PR will need to know how to dispose of them.

If the weapon or an accessory is covered by the National firearms Act (NFA), then the PR must follow all federal rules regarding its transfer and ensure the proper taxes are paid on the transfer, if applicable. These are also known as Title II weapons and include machine guns, sawed-off shotguns, and other destructive devices like grenades. Common accessories like silencers are also regulated by the NFA.

All owners must properly register NFA weapons with the federal government. When an owner wishes to transfer a weapon to someone else, the transfer of registration must be approved. This scenario is true for a sale during the owner’s life or distributing it after death. As the PR, one will need to obtain the correct Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form to ensure all rules are followed in applying for the transfer. One would also have to check the current status of the law to see if a chief law enforcement officer needs to sign off on an application to transfer registration.

This complicated procedure is why individuals often create Gun Trusts, which owns the firearms and enables multiple people to possess and use them. Additionally, firearms or guns held in trust can continue to be owned by the trust and possession can simply move to the beneficiary after the original possessor’s death. One would not have to go through the formal transfer procedure required by law or pay taxes on the transfer. If the decedent had a Gun Trust, contact an attorney experienced in this area about ensuring its proper administration and that the law is obeyed.

If the decedent owned a firearm not regulated by the NFA, then the transfer to a beneficiary will be easier. A PR should ensure that the beneficiary is at least 18 years old, has obtained any necessary license, and is not prohibited from owning firearms under the law. A PR should also ensure that the transfer is properly recorded. Florida does not require owners to register their firearms or obtain a license for certain handguns, rifles, or shotguns, therefore one may be able to transfer these to a beneficiary more easily.

The laws surrounding firearms are vast and complex.

A Florida Gun Trust is a revocable trust that owns certain firearms subject to federal regulation. The Gun Trust is an alternative to individual ownership of the firearm. All qualified Trustees may share the use and possession of the firearm. Privacy is achieved since the trust may add or remove Trustees who can use the firearm without public disclosure.

When using a Gun Trust, the firearm is owned by the trust itself, not an individual person. With a revocable gun trust, the names of the Trustees and beneficiaries can be changed during the grantor’s lifetime. A Gun Trust can also be called an NFA Trust, Class 3 Trust, Firearms Trust, or Title II Trust.

Generally, a Gun Trust allows multiple qualified users to share use of a Title II firearm. Gun trusts make it easier to avoid criminal liability in owning, sharing, and using a Title II gun; and upon the death or incapacity of the Trust grantor, a Florida Gun Trust allows private inheritance of the gun without probate or potential criminal liability.

The National Firearms Act (NFA) regulates the possession and use of firearms. Title I of the Act pertains to ordinary pistols, rifles, and revolvers. Most firearms in the U.S. are Title I firearms.

Florida law allows ownership of Title I firearms. The NFA does not require reporting the ownership or transfer of Title I firearms to the federal government.

Title II firearms include more advanced weapons, such as machine guns, silencers, suppressors, short barrel shotguns, and other destructive devices (Molotov cocktails, bazookas, etc.). Federal and state laws impose significant regulation of Title II firearms, and transferring these weapons requires filing documents with the government.

The federal government changed the rules for transferring Title II firearms in 2016. An individual transferring a Title II firearm must file an ATF Form 4 with the government and pay a $200 transfer fee. Form 4 includes a photograph of the applicant and FBI fingerprint cards. Notice of the application must be given to the chief law enforcement official (CLEO) in the county where the applicant resides.

Again, Title II firearms may not be owned by “prohibited persons.” A prohibited person includes any individual who has been convicted of a crime punishable by one year or longer, individuals diagnosed with a mental defect, an undocumented immigrant, a person convicted of domestic violence, or a person who uses marijuana (despite the legality of marijuana in a number of states). This rule applies to individuals and to Trustees of a Trust.

Federal law makes it illegal for anyone other than a registered owner who is not a prohibited person to have access to or possess a Title II firearm. Violation of the law does not require unauthorized use or possession, and mere dominion and control over the firearm by an unauthorized person is a felony. Violation of this rule is punishable by up to a 10-year prison term and $250,000 in fines.

Consequently, without a Gun Trust, an individual Title II gun owner who shares their firearm with a friend or family member who is not a registered owner of the firearm or who themselves are a prohibited person risks criminal prosecution.

It is important to note that it may not matter for criminal liability purposes if an unauthorized person did not intend to possess or use a Title II firearm.

A Florida Gun Trust may legally purchase and own a Title II firearm. An individual party to a Trust who has the authority to manage the Trust’s firearms is referred to under federal law as the “responsible person.” Typically, the Settlor or Grantor (creator of said Trust) and Trustees are the responsible persons. A Gun Trust provides quite a few benefits over individual ownership of Title II firearms as follows:

  • Sharing the Use of Firearms. Multiple individuals may not co-own or share a Title II weapon. Multiple Trustees of a Gun Trust, however, may share the same weapon if the Trustees are not prohibited persons. Title II firearms may be used by any qualified Trustee of a trust. A Grantor may add or remove Trustees over time. All Trustees must not be prohibited persons, and Trustees cannot transfer firearm possession out of the trust without complying with applicable state and federal regulations.
  • Avoiding Criminal Liability. In the case of individual firearm ownership, the mere access to the firearm by a friend or family member may be a felony. Including the same friends or family members in the trust avoids criminal liability traps.
  • Privacy. A Florida Gun Trust is a private document. The trusts are not registered with the state, and the general public cannot access the trust agreement online. Upon the death of the Trust Grantor, the Gun Trust will not be filed or recorded.
  • Control After Death or Incapacity. In the case of individual firearm ownership, the death of the registered owner may cause the firearm to be an asset in a public probate proceeding. Probate administration may result in the transfer of the Class II firearm to a minor, a prohibited person, or other unauthorized owner. Such transfer could result in government confiscation or a criminal violation of the NFA. On the other hand, if the Grantor of a Gun Trust is incapacitated or dies, the firearm remains a trust asset so that no transfer of title is required. Trust firearms are not involved in the decedent’s probate proceedings. The NFA does not consider the inheritance of a firearm by a trust beneficiary to be a regulated transfer. The successor beneficiaries of the trust do not have to file an ATF form, pay a transfer fee, or report to the local CLEO. The remaining Trustees, or beneficiaries added as Trustees after the Grantor’s death, may still legally use, and control the firearm.

While a Florida Gun Trust is also a revocable living trust, the Gun Trust has special provisions to comply with the NFA regulations. A properly drafted Gun Trust should include at least the following provisions:

  1. A Gun Trust should not leave firearms to just any individual. The Trust should leave weapons only to adult beneficiaries who may legally own the weapon in the beneficiary’s state of residence and who are not prohibited persons according to the NFA.
  2. The Trust document should define “prohibited persons” and ensure that successor or additional Trustees are not prohibited persons.
  3. The original Grantor and Trustee of the trust should consider that successors Trustees may not be knowledgeable about NFA rules. The Trust document should explain to a successor Trustee the guidelines for their exercise of discretion in the handling and conveyance of Title II Trust firearms.
  4. Arrangements should be made for termination of the Trust and the distribution to responsible and lawfully qualified successor beneficiaries.
  5. The power to amend or revoke the Trust must be restricted so that proposed amendments will not result in a violation of state or federal firearm laws.
  6. The Trust should explain the duties of the Trustee to repair and maintain firearms and give Trustees powers to store and use firearms.
  7. The Trust must include typical living trust provisions regarding property other than firearms, including cash, that the Settlor may contribute to the Trust or obtain from the sale of Trust firearms.
  8. Consider appointment of a Trust protector to, among other things, replace Trustees when appropriate, modify the Trust to comply with changing firearm laws, move the Trust to another jurisdiction, or resolve disputes among beneficiaries and Trustees without having to engage in formal mediation or litigation.

People cannot buy a firearm and then transfer the firearm to a Gun Trust without filing an ATF Form 4. The best practice is for the gun owner (the Trust Grantor/Settlor) to first create the Gun Trust Agreement. Next, the initial Trustee should open a Trust bank account, and the Grantor should contribute enough money to the Trust to purchase the firearm. Thereafter, the Trustee can purchase the firearm in the name of the said Trust.

The responsible person should then file an ATF Form 4 application. Each responsible person in the Trust Agreement (usually the Grantor and all Trustees) needs to complete his own ATF Form 23 as an individual.

A few internet websites sell allegedly standard Gun Trust forms cheaply. The customer merely fills in some blanks to generate forms to be submitted to the government. Saving money may not be the best choice when an innocent error or misunderstanding of website instructions could result in criminal liability and confiscation of the firearm.

As an example, a Gun Trust must comply with Florida Trust statutes. An online trust that does not meet all requirements of Florida Trust Law may be invalid. Some online trust forms do not limit possession of the trust’s firearms meaning that control and access may be inadvertently given to a prohibited person resulting in criminal liability. Also, the person using a standardized online form may pay for the firearm with his own personal funds rather than first opening a Trust checking account. This direct purchase would be improper and illegal.

Finally, the Florida Supreme Court has held that it is the unauthorized practice of law for a non-lawyer to draft a living trust. A Gun Trust is a specialized type of living trust. An internet site that drafts a Gun Trust for a Florida resident may be engaged in the unauthorized practice of law in Florida. If a Florida attorney sponsors it, then it may be a different story.

Florida law does not require Gun Trusts. However, without a Gun Trust, the use and access to Title II firearms are strictly regulated and restricted to the individual owner.

Finally, the National Firearms Act allows a Title II weapon to be owned by either an individual or another legal entity, including a Trust.

A Gun Trust may own any type of firearm, whether or not subject to NFA Title II rules. It may be recommended to have a separate Trust for Title II firearms so that a technical NFA violation causing a forfeiture would not affect Title I firearms, which may be owned individually or in a separate Trust.

 If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

Out of State Powers of Attorney Are Valid in Florida, But Can Still Be Problematic

A Power of Attorney which was validly created in another state is valid in the state of Florida. However, many out of state Powers of Attorney do not comply with Florida law. Individuals using these documents in Florida on a regular basis should have them updated by creating Florida compliant instruments. This article will explore why someone who moves to Florida should update an out of state Power of Attorney and provide some options if a third party or financial institution denies the out of state Power of Attorney as well.

The Power of Attorney is an extremely important and valuable document which allows a selected third party (or multiple third parties) to manage one’s property and financial affairs as well as make healthcare decisions. This third-party Agent can manage bank accounts, sell or buy property on the Principal’s behalf (i.e., the one who created the power of attorney and who authorized the Agent to act on his/her behalf), move around investments, decide how assets should be used for the Principal’s benefit, and make a number of important decisions about one’s finances or medical care.

Since the Power of Attorney is such an important document, it is highly scrutinized by financial institutions and other third parties. Financial institutions in Florida often deny out of state Powers of Attorney because they do not contain “super-powers,” or the Power of Attorneys are a few pages long and just grant extremely broad powers to the Agent listed in Power of Attorney.

The Florida Power of Attorney laws changed significantly in 2011. The most important change was that the new Florida Power of Attorney laws created what is known as the super-powers. These super-powers are powers that the state legislature considered so important that each super-power must be clearly expressed in the Power of Attorney and the Power of Attorney creator or Principal must place their initials next to the super-power provision or paragraph.

Even if a super-power is expressly stated in a Power of Attorney, but it is not initialed, then the Agent of the said Power of Attorney will not be able to perform that super-power on behalf of the subject Principal. This situation becomes extremely important when an individual no longer has capacity to update their Power of Attorney, then a Legal Guardianship (an expensive and time-consuming legal proceeding) must be started so that the Agent of the said Power of Attorney can perform that super-power.

The following is a brief list of some super-powers designated by the Florida Statutes that a person must sign or initial next to the applicable provision or paragraph for the Agent of the said Power of Attorney to exercise these powers:

  • Create an intervivos trust (also known as a living trust or a revocable trust).
  • Amend, modify, revoke, or terminate a trust.
  • Make a gift.
  • Create or change rights of survivorship.
  • Create or change a beneficiary designation.
  • Waive the Principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor annuity, including a survivor benefit under a retirement plan.
  • Disclaim property and powers of appointment.

Consequently, what does all this mean and how does it affect a person’s life in Florida? It is rarely seen that an out of state Power of Attorney document which had these powers listed requires the creator or Principal to initial or sign next to each power. This would mean that if an Agent of the Power of Attorney had to create a trust on the Principal’s behalf here in Florida, the Agent under the said Power of Attorney would not be able to do so because the subject out of state Power of Attorney document does not have the Principal’s initial or signature next to the applicable provision authorizing the said trust power provision.

The following is an example of how an out of state Power of Attorney might complicate a person now residing in Florida: An individual’s parent is incapacitated and needs to be placed into a nursing home in Florida. The nursing home cost about $9,000 to $10,000 per month. The Agent hires an attorney to do Medicaid planning for the parent so that they can try to preserve all the parent’s remaining assets or life savings and not spend it down after a year in the nursing home.

The first thing to be requested is a copy of the parent’s Power of Attorney. Said parent most likely has a typical 4-5 page out of state Power of Attorney which was prepared

several years prior to the parent’s incapacity and move to Florida. Said parent is slightly over the income limit for Medicaid, and what is required to be created is a Qualified Income Trust so that the parent can qualify for Florida Medicaid.

Due to the out of state Power of Attorney not having the subject parent’s initials or signature next to the provision, paragraph, or power to create a trust, the attorney and family have to establish a legal Guardianship, which cost can average between $8,000 to $10,000 just to establish in order that the Agent can just set up the aforesaid trust and salvage the parent’s assets from the nursing home.

FURTHER, a third party can reject an out of state Power of Attorney in Florida within a “reasonable time.” This term customarily means four (4) business days for financial institutions or banks. The third party must provide a written statement explaining their basis or reasons for denying the Power of Attorney. A third party can also request an Affidavit from the Agent of the subject Power of Attorney stating that the Power of Attorney is still in effect.

If a third party or financial institution denies an out of state Power of Attorney in Florida, then the Agent of the Power of Attorney can sue the third party to force the third party to comply with, follow and/or accept the Power of Attorney. The third party can be liable for damages, including court costs and attorney’s fees, if the Agent for the subject Power of Attorney prevails in the lawsuit.

However, lawsuits cost a substantial sum of money and take considerable time. If an Agent under a Power of Attorney needs to act quickly (e.g., sell property or do Medicaid planning), then a lawsuit is not very practical. The best alternative is usually to have the creator or Principal of the Power of Attorney sign and execute a new Florida Durable Power of Attorney so that the Agent can act immediately. This option will only work if the creator or Principal of the Power of Attorney still has the legal capacity to sign and execute a new Florida Durable Power of Attorney.

If the creator or Principal of the Power of Attorney is no longer competent, then an experienced Florida Estate Planning or Elder Law attorney may have some success with the third party’s legal department or management team to try to convince them to accept the out of state Power of Attorney. This process can be more effective if the out of state Power of Attorney complies with Florida state law.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.