Some Frequently Asked Questions about Florida Living Trusts

Posted by CSG Firm on

The following are general answers to some frequently asked questions about Living Trusts in Florida:

  1. What is a Living Trust and how is it different from a Last Will and Testament?

    • A Living Trust, also known as an inter vivos trust, is a legal agreement that allows a grantor to transfer ownership of assets to the trust during their lifetime. Unlike a Last Will & Testament, a trust helps avoid probate court after the grantor’s death, resulting in a more streamlined estate administration process.
  2. How can one create a Living Trust in Florida?

    • To create a Living Trust in Florida, one must first identify the assets they wish to transfer into the trust. Consulting with an attorney to draft the trust agreement is essential, as it must comply with Florida’s legal requirements. After drafting the document, assets need to be transferred into the trust’s name.
  3. What are the disadvantages of living trusts in Florida?

    • Living Trusts in Florida can be more expensive to create than Last Wills due to the legal work involved. Assets transferred to a trust may still be vulnerable to legal challenges, and managing a trust can be complex, requiring ongoing attention and potential legal assistance. Some individuals may also feel a loss of control over their assets after transferring them to a trust.
  4. Should a Florida resident put their house in a trust in Florida?

    • Whether to place one’s primary residence in a trust depends on individual circumstances. For married individuals with minor children, transferring the primary residence to a trust may not be advisable due to Florida homestead laws. Transferring one’s primary residence into their Living Trust in Florida may cause the trust to fail and the asset to be administered through the Probate Court nevertheless as well jeopardize the property tax exemption and creditor protection. However, for others, it can offer benefits such as probate avoidance and privacy as well as various income or estate tax benefits, e.g., if a high net worth couple. Under Florida law, a person may still benefit from the homestead tax exemptions even after the property has been transferred to their trust, if a specialized Homestead Trust is utilized. In Florida, a Lady Bird or Enhanced Life Estate deed is an alternative.
  5. How much does it cost to create Living Trusts in Florida?

    • The cost of creating a Living Trust in Florida can vary depending on its complexity. Trusts may range from $2,000 to $10,000 or more, with costs increasing for more complex documents. Clients should also consider ongoing management costs and fees for professionals.
  6. Can one make their own Living Trust in Florida?

    • While Florida law does not mandate hiring an attorney to draft a Living Trust, it is advisable due to the complexity of the process. DIY documents may lead to legal consequences or the need for costly corrections. Consulting with an experienced attorney can help ensure that the trust meets all legal requirements and addresses individual needs.

In conclusion, creating a Living Trust in Florida can offer numerous benefits but still has some disadvantages as well depending on the circumstances. However, it is essential to understand the process and seek professional assistance to navigate the complexities effectively. Consulting with an experienced estate planning and/or trust attorney can help individuals create a trust that aligns with their goals and protects their assets and beneficiaries.

The foregoing is a brief and general overview of the topic. If you have any additional questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.