What is a Florida Revocable Trust?
Everyone has a Florida Revocable Trust ! Billions and Billions of dollars are put into them. And family members, in-laws, outlaws, heirs and mis-fits all inherit from revocable trusts every day. So, what really is this estate planning tool or vehicle? For an authoritative, easy-to-understand, Plain English and FREE “one stop shop” on revocable trusts, CLICK HERE. To read more about Family Trusts, consider reading John Pankauski’s book, Pankauski’s Trustee’s Guide: 10 Steps to Family Trustee Excellence. Want more, including a recent revocable trust opinion and statutes? Keep reading.
2020 Palm Beach Trust Case
A revocable trust is often an important part of one’s Florida Estate Plan. Like a Last Will, it can leave money and property to select beneficiaries. It has been described as an instrument, an estate planning vehicle, a document. A revocable trust is all of that and more. Most wills today are POUR OVER WILLS which leave everything to a rev trust. The rev trust then distributes inheritances out. The creator of a trust is called the “grantor” or “settlor.” Typically, you are your own trustee when you create such a trust. When you are longer a trustee, you can appoint a successor in your trust document. On August 5, 2020, the Palm Beach Appeals Court issued an important opinion. This appeals court is known as the 4th District Court of Appeal. They issued their opinion on Florida Revocable Trust in the case of Schlossberg v. Estate of Kaporovsky. This trust appeal explained what a revocable trust is. To read a host of Florida Legal Commentary on revocable trusts, CLICK HERE. That link provides successor trustees and beneficiaries with a quick, intelligent background on revocable trusts. A revocable trust may also be known as a living trust, or a revocable living trust.
The Florida Trust Code is Chapter 736. This set of Florida Trust Laws has a number of statutes about revocable trusts. What are the requirements for a valid trust? CLICK HERE. Remember that a revocable trust is responsible for the creator’s expenses of administration, debts and estate obligations. That means that the decedent’s debts need to be paid before a trust beneficiary sees a dime. That makes perfect sense when you think about it. You can’t short change your creditors by putting everything into a living trust. Otherwise, everyone would create a trust, and then spend a lot of money with no intention of paying those pay those expenses. It is important to for the trustee of the trust to coordinate money with the person who runs the estate. Yes, an “estate” is different than the “trust.” Two separate entities. Although, they may be very closely related. For example, the trustee of the revocable trust may be the same person as the Personal Representative of the Estate.