When it comes to protecting your legacy, reducing estate taxes, avoiding probate, and providing for your loved ones, a family trust can be a powerful tool in your Florida estate plan. However, it is not a one-size-fits-all solution—and understanding whether it is right for you begins with the basics.
What Is a Family Trust in Florida?
A family trust is a legal entity that holds and manages assets for the benefit of family members. Like other trusts, it involves:
- The Grantor – the person who creates the trust and funds it with assets.
- The Trustee – the individual or institution responsible for managing those assets.
- The Beneficiaries – typically family members, who receive financial benefits according to the terms of the trust.
Florida family trusts are typically revocable living trusts, meaning they are created during the grantor’s lifetime and can be altered or revoked at any time. However, irrevocable trusts, which are permanent and cannot be changed once established, are sometimes used for asset protection or tax planning purposes.
What Are Family Trusts Used For in Florida?
A Florida family trust serves several key estate planning functions:
Avoiding Probate
Assets held in a properly funded trust bypass the probate court process altogether. This saves time, reduces legal costs, and preserves privacy for your beneficiaries.
Maintaining Control
You can specify when, how, and under what conditions beneficiaries receive distributions—whether at certain ages, for specific purposes, or only under trustee discretion.
Protecting Assets
Irrevocable family trusts may shield assets from creditors, lawsuits, or financial mismanagement, particularly when beneficiaries are young or vulnerable.
Minimizing Taxes
While Florida does not have a state estate tax, federal estate tax planning may still apply, especially for high-net-worth families. Trusts can help reduce tax liability and preserve generational wealth.
Preserving Family Privacy
Unlike probate, which is public record, the administration of a trust is private. This can help avoid disputes, gossip, or financial exposure.
How Do You Set Up a Family Trust in Florida?
Here is a general guide to creating a family trust in Florida:
- Consult an Estate Planning Attorney
Start with experienced legal guidance. Florida has unique trust and probate laws, and a local attorney can ensure your trust is properly drafted and compliant with state requirements. - Choose the Right Type of Trust
Most family trusts are revocable, giving you flexibility and control during your lifetime. However, if your goal is asset protection or estate tax planning, an irrevocable trust may be more appropriate. - Select a Trustee
You may serve as your own trustee during your lifetime, but it is essential to name a successor trustee to step in upon incapacity or death. This can be a trusted individual or a professional fiduciary. - Name Your Beneficiaries
Decide who will benefit from the trust and under what conditions. Children, grandchildren, spouses, or even charities can be included. - Create the Trust Agreement
Your attorney will draft a formal document outlining the trust’s terms, the trustee’s powers, and the distribution instructions. - Fund the Trust
This step is crucial: transfer ownership of your assets such as your home, bank accounts, investment portfolios, or business interests into the name of the trust. Unfunded trusts do not avoid probate and may fail to achieve their goals. - Keep It Current
Your family trust should evolve with your life. Revisit and revise it after major life changes such as births, deaths, marriages, divorces, or significant financial shifts.
Is a Family Trust Right for You?
A family trust is not just for the wealthy. It is for any Florida resident who wants to avoid probate, control how assets are distributed, and protect their family’s future.
You might benefit from a trust if:
- You want to avoid probate in Florida.
- You have minor children or dependents with special needs.
- You own property in multiple states.
- You want to protect assets from creditors or lawsuits.
- You have a blended family or complex family dynamics.
On the other hand, if your estate is small and your beneficiaries are adults with no special concerns, a trust may not be necessary and a well-drafted Last Will & Testament as well as Lady Bird deed for real property and designated beneficiaries on appropriate accounts may suffice.
Do not Trust Online Forms—Get Local Legal Guidance
While online tools and financial advisors can help you learn the basics, only an experienced Florida attorney can ensure your family trust is legally valid and tailored to your specific needs. Mistakes in setup, funding, or compliance can cost your family dearly in court fees and taxes later on.
The foregoing is a brief and general overview of the topic and the need for specific and experienced legal and tax advice is emphasized.
Talk to CASERTA & SPIRITI Today
At CASERTA & SPIRITI in Miami Lakes, we help Florida families build customized estate plans, including trusts, which reflect their values, goals, and financial legacy. Whether you are just getting started or reviewing an existing plan, we are here to help you navigate the process with clarity and care. Contact our office for a consultation and find out whether a Florida family trust is right for you.