If you are estate planning, you may be wondering how Florida trust laws can help you create a solid estate plan. Florida allows for many forms of trusts, each offering unique benefits and defined legal requirements. By using a trust, you can ensure that your assets can be distributed as you would like.
What Is a Trust
A trust is a powerful estate planning document that transfers your assets to a trustee who can manage them according to your instructions and distribute them to your beneficiaries after your death. A trustee acts according to the specific instructions you set out in the trust, ensuring that they follow your wishes with your assets.
Many people think of a trust as being for the wealthy, and 56% of adults believe they don’t have enough assets to leave anyone. Regardless of the size of your estate, a trust can maximize its benefit for your beneficiaries. Without estate planning documents, your inheritance is decided in probate. Florida courts handle almost 150,000 probate filings a year, and it is often slow, expensive, and doesn’t consider your wishes without estate planning documents.
Assets a Trust Can Cover
A benefit of a trust is that it can cover a variety of assets. A lawyer can review your estate so you feel confident that all your assets are accounted for and included in your estate plan. Assets that are covered by a trust include:
- Real estate
- Cash, checking, and savings accounts, and non-retirement brokerage accounts
- Investments, including stocks, bonds, and mutual funds
- Personal belongings
- Life insurance policies
- Business ownership
Types of Trusts in Florida
Florida trust laws allow for a variety of types of trusts, each designed to offer different protections and benefits. A lawyer can examine your assets and your estate planning goals to determine which trust provides the most benefit for your trust case. Common types of trusts in Florida include:
- Revocable living trust. Revocable living trusts avoid probate, simplifying the inheritance process for your beneficiaries and saving time and money. This type of trust can be changed or revoked during your lifetime if you wish to change your plans or update your trust to reflect changes in your assets.
- Irrevocable trust. Irrevocable trusts can’t be altered or revoked, but they do offer greater asset protection. These trusts are protected against claims from creditors and can minimize taxes on your estate.
- Testamentary trust. A testamentary trust is created in your will, not as a separate document. This type of trust is a good way to distribute your inheritance to minor children, such as by being managed by a trustee who can administer your inheritance to the beneficiaries.
- Special needs trust. If your beneficiary has a disability that allows them to receive Medicaid or Supplemental Security Income (SSI), a special needs trust can allow them to receive your inheritance without risking losing these benefits in Florida.
Why You Should Hire a Trust Lawyer
Creating a trust is legally complex, requiring a deep understanding of trust laws and critically reviewing your estate. By thoroughly analyzing all assets in your estate, a lawyer can identify the right type of trust for you. If you are looking to maximize the value of your estate and make it easy for your beneficiaries to receive your assets, a lawyer’s knowledge of trust laws is invaluable.
A lawyer can write a trust that is extremely clear and precise while allowing for any customizations you wish to include. Precise wording and conforming to the legal requirements reduce the possibility that a trust can be misinterpreted or disputed. A lawyer can maintain this high legal standard while personalizing the trust to reflect your wishes for your estate.
FAQs
Can You Change or Revoke a Previous Trust?
Whether or not you can change or revoke a trust depends on the type of trust. Examples of common trusts you can’t modify or revoke are irrevocable or special needs trusts, while revocable living and testamentary trusts can be changed or revoked. If you are looking to make changes to a trust, speaking with a skilled Florida trust lawyer can help you make appropriate changes, if possible.
Do You Still Need a Will if You Have a Trust?
Yes, you generally need a will even if you have a trust. A will can cover any assets not transferred in the trust, establish a personal representative, and make known other wishes you have for your estate. A will is especially important if you have minor children, as you can set up a testamentary trust in a will as well as name who you would like to be your children’s guardian if you die before they reach adulthood.
What Are the Disadvantages of a Trust?
The disadvantages of a trust depend on what type of trust your assets are in, as they each face specific drawbacks. There are several pitfalls of certain trusts, such as requiring probate, being unable to protect assets from high taxes or from creditor claims, limited ability to change or be revoked, and they are generally complex and expensive. A trust lawyer can help you make an informed decision on what trust to place your assets in to avoid certain disadvantages.
Can Retirement Savings Be Placed in a Trust?
No, retirement accounts, such as a 401(k) or IRA, cannot be put into a trust. Instead of putting these accounts into a trust, they can be distributed directly to your beneficiaries. In some cases, your trust lawyer can list your trust as a beneficiary of the retirement account so the funds can be distributed according to your trust, allowing for more flexibility in how the funds are distributed while avoiding high taxes.
Learn How Caporicci & Tinari Law, PLLC, Can Help You With Your Estate Plan
If you are wondering how to protect your loved ones and your assets after your death, setting up a trust can be a good option for you. At Caporicci & Tinari Law, PLLC, we have helped countless Floridians plan their estate. Contact us today to learn how an experienced Florida trust attorney can help you establish a clear and comprehensive trust.
