A living trust is an estate planning tool that can help your loved ones avoid probate court after your passing. You can transfer formal ownership of your property to these trusts, thereby removing them from your estate. However, you can often still benefit from ownership of these assets during your life.
If you have questions about living trusts in Florida, one of our knowledgeable probate attorneys can assist. There are strict requirements that come with drafting trust documents, and attempting it on your own without a legal professional is unwise.
Revocable vs. Irrevocable Living Trusts
The trust that someone makes can be either revocable or irrevocable. When a trust is revocable, the creator can alter or terminate it at any point during their lifetime. This can be done for any reason without the need for court approval.
Irrevocable trusts are not so simple to change. As the name implies, the creator generally cannot bring them to an end once they are created. There are some limited situations where a court will allow modification or termination, but this is usually only an option when a mistake is discovered or when all interested parties agree to the change.
Although they are less flexible, irrevocable trusts are popular because they come with additional benefits, such as potential tax savings and a path to avoid probate court.
Creating a Living Trust in Florida
To create a living trust in Florida, the grantor must determine what kind of arrangement is appropriate, specifically whether it is revocable or irrevocable. There is also the option to have a joint trust or limit it to a single creator.
The creator must possess the mental capacity to create the living trust, meaning they understand the impact of the document they are signing. They must also identify the beneficiaries, trustees, and the property involved. While this must be in writing, there is no formal requirement to file the document with the state or register it with an agency.
Why Avoid Probate Court by Making a Trust?
One of the major benefits of a trust is that it allows the creator’s heirs to avoid the probate court process. When someone dies, the probate court system is used to evaluate their will, if one exists. The judge will then distribute those assets based on either the terms of the will or on the state’s intestate succession laws.
The downside to this is that probate is a costly and slow process. It can take months to distribute assets, or even longer if there is a dispute over the terms of the will. There is also the chance that intestate succession leads to a person receiving assets the decedent did not wish to give them.
These issues also play out in public court hearings. For families that value their privacy, probate can make these deliberations public. The use of the appropriate living trust in Florida can avoid all these issues and allow a beneficiary to skip probate entirely. This is possible because the trusts are the formal owners of the assets instead of the deceased, leaving nothing for the courts to address.
Talk to a Florida Attorney About Setting Up a Living Trust Today
If you are considering a living trust in Florida, you do not have to create one on your own. Our skilled legal professionals at The Florida Probate & Family Law Firm can help you get the outcome you deserve and avoid the pitfalls that come with drafting your own estate planning documents. Call our team today for a free case evaluation.