## Facts

- Paul Engelke died survived by his spouse, Judy, and three adult children from a prior marriage.
- Before marriage, Paul and Judy executed an antenuptial agreement waiving surviving-spouse homestead rights under the Florida Constitution.
- Paul and Judy purchased a residence jointly, then each transferred their respective one-half interests into separate inter vivos revocable trusts; Paul served as trustee of his trust during life.
- Paul’s trust held his one-half interest in the residence (the major asset) and approximately $10,000 in cash; the residence interest was of far greater value and subject to a mortgage.
- Under Paul’s trust, Judy had the right to live in the residence for life if she paid maintenance expenses; upon her death or leaving the home, Paul’s children would take the property under the trust’s residuary provisions.
- Paul’s trust included a general clause directing the trustee to pay funeral expenses, allowable claims, last-illness costs, and administration expenses from trust assets if the probate estate lacked liquidity.
- The probate estate had insufficient assets to cover claims and expenses, including a family allowance sought by Judy as personal representative.
- The probate court ordered the successor trustee, Michael Engelke, to use trust assets—including Paul’s one-half interest in the residence—to pay the estate’s shortfall.
- Michael appealed, arguing the one-half interest in the residence was constitutionally protected homestead and could not be used to satisfy estate debts and expenses.

## Issues

1. Whether a decedent’s one-half interest in a residence titled in the decedent’s revocable inter vivos trust retains Florida constitutional homestead protection against forced sale for payment of estate debts and expenses.
2. Whether a general trust directive to pay estate debts and administration expenses authorizes use or liquidation of homestead property absent a specific, clear expression subjecting the homestead to such payment.
3. Whether an antenuptial waiver of surviving-spouse homestead rights affects the homestead exemption from creditor claims and estate expenses.

## Decision

- The Fourth District Court of Appeal reversed the probate court’s order.
- The court held that homestead protections attached to the residence despite titling in a revocable trust because the decedent retained complete control during life and conveyed no vested ownership interest to the trust.
- The court concluded the trust’s general payment-of-debts provision did not specifically authorize sale or use of the homestead to satisfy estate obligations.
- The court determined the antenuptial waiver affected spousal rights relating to descent and devise but did not waive the homestead exemption from forced sale for debts and expenses.

## Legal Principles

- Florida constitutional homestead protection may apply to a residence held in a revocable inter vivos trust when the settlor retains full control and beneficial ownership during life.
- A general direction in a trust to pay estate debts and administration expenses from trust assets is insufficient, standing alone, to waive homestead protection or to subject homestead property to forced sale.
- Waiver of homestead protection from forced sale requires a clear, specific expression of intent to subject the homestead to payment of debts; boilerplate debt-payment language does not meet that standard.
- A spouse’s antenuptial waiver of homestead rights related to descent and devise does not, by itself, eliminate the homestead exemption from creditor claims or authorize use of homestead to pay estate expenses.

## Conclusion

The appellate court held that the decedent’s one-half interest in a residence held in his revocable trust remained constitutionally protected homestead and could not be used to pay estate debts, administration expenses, or a family allowance absent a specific, express intent to subject the homestead to such obligations.


Engelke v. Estate of Engelke, 921 So. 2d 693 (Fla. Dist. Ct. App. 4th Dist. 2006)