Calculation of The Augmented Estate
The elective share is usually calculated from assets beyond those in the probate estate alone, and the assets that are added together to make this calculation are called an augmented estate. This calculation serves two functions. First, it prevents the decedent from effectively disinheriting the surviving spouse by either gifting away assets before death, or by tying up assets in devices such as trusts or joint accounts that benefit third parties after the decedent's death. Second, it prevents the surviving spouse from taking too large of an elective share, if the decedent had already transferred substantial assets to the spouse.
To accomplish this, the augmented estate is calculated by combining the value of the probate estate with such things as the value of gifts given by the decedent to third parties, property or accounts held in survivorship estates (such as a joint bank account, the proceeds of which would pass to the survivor among the account holders), the value of life insurance policies over which the decedent had the power to name the beneficiary, as well as gifts to the surviving spouse, and property held jointly with the surviving spouse.
The elective share in Florida gives a surviving spouse 30% of the elective estate, which includes all property owned by the decedent, property given away within one year of death, property inside a revocable trust (also known as a Living Trust), and pay on death accounts.
Read more about this topic: Elective Share
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