One major concern for those considering creating a trust agreement in Florida, is whether the trust should be arevocable trust or an irrevocable trust. West Palm Beach Estate Planning attorneys get this question all of the time. In reality, however, there is no clear winner when considering anirrevocable trust vs. a revocable trust Florida. Both Florida estate planning tools have significant value, and the right choice for you will often depend on what goals you want to accomplish.
Revocable trust (Florida):
- This is a trust agreement in Florida that is amendable and revocable during one’s lifetime.
- The creator of the trust can be both the creator and the sole trustee.
- This gives him or her full control over the assets transferred to the trust.
- He or she can also specify to whom the assets titled in the trust are to be distributed to upon his or her death.
Irrevocable trust (Florida):
- Sometimes used to gift assets during your lifetime for the benefit of your children and/or grandchildren.
- Often used for those who have significant life insurance assets and don’t want the assets to go outright to the beneficiary.
- Perhaps the most common irrevocable trust utilized by West Palm Beach seniors today is theirrevocable Medicaid asset protection trust (Florida), which is ideal for individuals wanting to protect their home and a portion of their life savings against the costs of long-term care.
- An irrevocable trust cannot be amended and/or revoked by the creator, and neither the creator nor his or her spouse should be appointed as trustee of said trust.
- While an irrevocable trust does not allow the trustees to distribute the trust principal to or for the benefit of the creator, the creator can receive any income generated by the trust assets and have the right to reside in and utilize any real property transferred to the trust during their lifetime.
Still, there are many different types of trusts in Florida, both revocable and irrevocable. Which option is the right choice for you? If you have useful tips from experience in creating or working with trusts, leave a comment below!
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