The revocable, or “living,” trust in Florida is often promoted as a means of avoiding probate and saving taxes at death. It is governed by Chapter 736 of the Florida Trust Code (Florida Statutes).
As any Florida Probate litigation attorney West Palm Beach will tell you, the revocable trust in Florida has certain advantages over a traditional will. However, there are many factors to consider before you decide if a revocable trust is best suited to your overall estate plan:
- A revocable trust in Florida is created to manage your assets during your lifetime anddistribute the remaining assets after your death.
- The person who creates a Florida trust is called the “grantor” or “settlor.”
- The person responsible for the management of the trust assets is the “trustee.”
- The grantor can serve as trustee, or may appoint another person, bank or trust company to serve as the trustee.
The trust is “revocable” since the grantor may modify or terminate the trust during his or her lifetime, as long as he or she is not incapacitated.
- During the grantor’s lifetime the trustee invests and manages the trust property.
- Most trust agreements allow the grantor to withdraw money or assets from the trust at any time, and in any amount.
- If the grantor becomes incapacitated, the trustee is authorized to continue to manage your trust assets, pay the bills, and make investment decisions.
- This may avoid the need for a court-appointed Florida guardian of your property.
Upon the grantor’s death, the trustee (or the grantor’s successor if the grantor was the initial trustee in life) is responsible for paying all claims and taxes, and then distributing the assets to the beneficiaries as described in the Florida trust agreement. The trustee’s responsibilities in Florida can be found in more detail here.
West Palm Beach Probabte Litigate lawyers have seen both the good and the bad result from Florida Living Trusts. Have you had a personal experience with living trusts in Florida? If so, leave a comment down below.
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