After your death, the Florida Revocable Living Trust becomes irrevocable, and at this point, if properly designed, asset protection provisions can be added to the Living Trust to protect your beneficiaries. You can appoint your trustee to keep the assets in trust until, for example, your children reach the age of 35, while regularly providing your children with income from the trust and giving the trustee the discretion to make capital distributions at a certain age or at certain events in their lives. Estate Trustee – If the original trustee becomes incapacitated or dies, the successor trustee receives permission to administer the trust. The first goal of a revocable Living Trust in Florida is to avoid probate court. Settlor (or „settlor“) – a person who pays their assets into the trust to assist beneficiaries. Your assets, such as bank accounts, real estate and investments, must be formally transferred to the trust before your death in order to derive maximum benefit from the trust. This process is called „financing“ of the trust and requires the change of ownership of the assets in the trust. Property that is not properly transferred to the trust may be inherited. However, some assets should not be transferred to a trust, as there may be income tax issues. You should consult with your lawyer, tax advisor and investment advisor to determine if your assets are suitable for fiduciary ownership.
Download this Florida Living Trust, which allows a settlor to transfer assets or assets to a separate entity owned and managed by a trustee for the benefit of others. This instrument allows an grantor to decide flexibly when and how to distribute its assets to its beneficiaries. The settlor selects a trusted person or entity to manage the trust. The trustee is a fiduciary duty to administer the trust for the benefit of the beneficiaries and in accordance with the provisions set out in the document. When we think about creating a Revocable Living Trust in Florida, we need to think about the purpose of creating a revocable Living Trust. In some situations, your property may be transferred to your trust. Most Florida counties have special requirements to maintain the property tax exemption, and special language may be required in the trust agreement and deed. However, family property can lose its exemption from creditors if the property is held in a revocable trust – bankruptcy law is unclear on this point. Your lawyer can advise you on whether it is appropriate to place your property in your trust and, if so, on the requirements for a valid transfer.
Real Estate – To place real estate in a trust, a Florida deed must be completed, signed, certified, and notarized before it is filed with the Circuit Court Clerk. Homestead has many limitations that I cover in this article. But to give you a brief overview, if you transfer your property to your revocable living trust and leave before your child`s 18th birthday, it will be an invalid invention of the property and it will happen in accordance with Florida property law and not under the terms of your revocable living trust. But most assets can be placed in the name of a revocable living trust in Florida. The two assets you need to watch out for before placing them in a revocable trust are your Florida family property and your individual retirement accounts („IRAs“). The terms revocable living trust and living trust are one and the same thing. The terms are used interchangeably, but when I talk about a revocable trust or a living trust, I am referring to the revocable living trust. Your trustee may have extensive powers or very limited powers. In both cases, your trustee is a trustee and must adhere to a strict standard of care in the performance of fiduciary duties. The other option is for your success trustee to make regular distributions.
We, estate planning lawyers, often use this option. As a general rule, we recommend that the Success Trustee make income distributions and authorize the successor Trustee to make capital distributions for specific events such as health, education, maintenance and support. A revocable trust is a document (the „Trust Agreement“) that you have created to manage your assets during your lifetime and to distribute the remaining assets after your death. The person who creates a relationship of trust is called a „constituent“ or „constituent“. The person responsible for managing the trust`s assets is the „trustee“. You can act as a trustee, or you can appoint another person, bank or trust as trustee. .