What is a Revocable Trust Florida?
Millions and billions of dollars pass through revocable trusts in Florida to beneficiaries, family members, in-laws and even outlaws. But many people mis-understand what a revocable trust is. This is your easy-2-understand guide. We have previously written about these estate planning documents, or entities (click HERE to read more). Now, let’s go a bit deeper. What is a Revocable Trust Florida?
Background — why do I care?
You need to know about revocable trusts for 2 main reasons.
First, everyone in Florida has them ! (Mostly everyone !!). They work just like a will….sort of ! They are part of a Florida resident’s estate plan. They can work with a pourover will and also a power of attorney.
Most of the time, someone has a will that leaves most everything to their revocable trust.
Then, the revocable trust gathers assets and administers those assets according to the trust document. The trust document may, for example, distribute everything right then and there. Or, keep money in trust for years and years to come. (Some beneficiaries may never get a dime. And some may not see any money for decades unless you modify the trust. Want to modify a trust? Start by reading this law. ) What else do I need to know about what is a revocable trust Florida?
What is a revocable trust ?
Second, that’s how a lot of inheritances are left or created. Through one of these trusts.
While most of the time a lawyer writes a trust. But the “creator” is called the “grantor” who is the client.
So, a client may have a will and a revocable trust. The trust is “amendable” during the grantor’s life. But, when they become incapacitated or when they die, the trust is irrevocable. (To see a free Florida trust video on a trust challenge or trust contest, click HERE.)
The trustee is in charge of the trust. She has fiduciary duties that she owes all beneficiaries. Sometimes beneficiaries won’t receive information or money for years. And they incorrectly believe that they are not beneficiaries. But they are. If a trustee doesn’t do her job correctly, a beneficiary may be able to recover damages, interest, attorneys fees and costs in a trust lawsuit.
Beneficiaries are entitled to know what’s going on in the trust. Even those beneficiaries who don’t inherit for decades, or until someone dies. Complete transparency. Total disclosure. If your trustee does not do that, you have to wonder if you have a breach of fiduciary duty claim.
And that’s all………….
What else can I read about Florida revocable trusts?
Consider starting with the Florida Trust Code.
The section on creation of a Florida Revocable Trust can be read for free right HERE.
In short, there are two important points to consider if you are involved with a trust. First, many people are beneficiaries even when they think that they are not. Second, you have a lot of rights to know what’s going on. How you exercise those rights, or don’t, is up to you.