Your Assets in a Trust

Estate planning is essential for Florida residents who want to protect their assets, provide for their loved ones, and ensure their wishes are honored after they’re gone. Two primary estate planning tools are trusts and wills, each serving different purposes and offering unique advantages. This guide explains the fundamental concepts, requirements, and considerations for creating trusts and wills in Florida.

Florida Trusts: What You Need to Know

What is a Trust in Florida?

A trust is a legal arrangement where property and assets are held by one party (the trustee) for the benefit of another (the beneficiary). Trusts in Florida offer flexibility in managing assets during your lifetime and distributing them after death, often without court involvement.

Types of Trusts in Florida

Florida law allows for various trust structures, each designed to address specific needs:

Revocable Living Trusts

These trusts can be modified or revoked during your lifetime, offering flexibility as your circumstances change. Assets placed in a revocable living trust avoid probate while allowing you to maintain control during your lifetime.

Irrevocable Trusts

Once established, these trusts typically cannot be easily changed. However, they offer stronger asset protection and potential tax benefits compared to revocable trusts.

Special Needs Trusts

Designed to provide for individuals with disabilities without jeopardizing their eligibility for government benefits.

Asset Protection Trusts

These trusts help shield assets from potential creditors while ensuring they benefit your chosen beneficiaries.

Spousal Lifetime Trusts

Created to provide for a spouse while protecting assets from creditors and potentially reducing estate taxes.

“Staged Distribution” Trusts

Allow for gradual distribution of assets to children or grandchildren at specified ages or milestones rather than all at once.

Florida Trust Requirements

Creating a valid trust in Florida requires:

• The trust creator (settlor) must have legal capacity
• A clearly identified trustee who will manage trust assets
• Designated beneficiaries who will receive trust assets
• Funded trust with properly transferred assets
• Proper documentation meeting Florida’s legal standards

How to Set Up a Trust in Florida

The process typically involves:

1. Determining your estate planning goals and which type of trust best serves them
2. Working with an estate planning attorney to draft trust documents
3. Executing the trust according to Florida legal requirements
4. Funding the trust by transferring assets into it
5. Reviewing and updating the trust periodically as circumstances change

Cost of Establishing a Trust in Florida

The cost of creating a trust in Florida typically ranges from $1,500 to $3,500 for a basic revocable living trust, though more complex trusts can cost significantly more. Factors affecting cost include:

• Complexity of your estate
• Type of trust needed
• Attorney fees in your region
• Additional documents needed (powers of attorney, healthcare directives)

Should I Put My House in a Trust in Florida?

Placing your home in a trust can offer several advantages for Florida residents:

• Avoids probate for this significant asset
• Provides privacy regarding ownership and transfer
• Allows for continued use during your lifetime (with revocable trusts)
• Can protect the property for future generations

However, considerations include potential mortgage complications, homestead exemption concerns, and administrative requirements. Each situation requires individual analysis.

Disadvantages of Trusts in Florida

While trusts offer many benefits, potential drawbacks include:

• Higher initial cost than a simple will
• Administrative responsibilities for trustees
• Complexity in establishing and maintaining
• Need to retitle assets to fund the trust properly
• Potential complications with certain types of assets

Florida Wills: Essential Information

What is a Will in Florida?

A will is a legal document that specifies how you want your assets distributed after death and can name guardians for minor children. In Florida, wills must go through probate—the court-supervised process of validating the will and distributing assets.

Florida Will Requirements

For a will to be valid in Florida:

• The creator (testator) must be at least 18 years old and of sound mind
• The will must be in writing
• The will must be signed by the testator in the presence of two witnesses
• The witnesses must sign in the presence of each other and the testator

How to Create a Will in Florida

You can create a will in Florida by:

1. Determining your beneficiaries and assets to be distributed
2. Deciding on guardians for minor children if applicable
3. Selecting an executor to administer your estate
4. Working with an attorney to draft the will or using legal forms (though attorney assistance is recommended)
5. Signing the will with proper witnessing
6. Storing the will in a secure location known to your executor

Does a Will in Florida Have to Be Notarized?

A will in Florida does not require notarization to be valid. However, adding a self-proving affidavit (which is notarized) can simplify the probate process. This affidavit confirms that the will was properly executed, potentially eliminating the need for witnesses to testify in court.

How Much Does a Will Cost in Florida?

The cost of creating a will in Florida varies:

• Attorney-drafted wills typically range from $300 to $1,000 for individuals
• Couples may pay $500 to $1,500 for reciprocal wills
• Online or DIY will forms may cost $20 to $100
• More complex estates may require more extensive planning and higher fees

How to Find a Will in Florida

If you need to locate someone’s will in Florida:

1. Check their personal files, safe deposit boxes, or home safes
2. Contact their attorney, if known
3. Inquire with the county clerk’s office where they resided
4. Check with financial institutions they used
5. Once probate begins, the will becomes public record and can be accessed through the clerk of court

Do I Need a Lawyer for a Will in Florida?

While not legally required, working with an attorney to create your will is highly recommended because:

• Florida law has specific requirements for valid wills
• An attorney can help avoid common mistakes that could invalidate your will
• Complex family situations or significant assets benefit from professional guidance
• Proper planning can minimize probate expenses and complications
• An attorney can suggest complementary documents like powers of attorney

Is It Better to Have a Will or a Trust in Florida?

The choice between a will and a trust depends on your specific circumstances:

Consider a Will if:

• You have a relatively simple estate
• Cost is a primary concern
• You need to name guardians for minor children
• Your estate value is modest
• You don’t mind assets going through probate

Consider a Trust if:

• You want to avoid probate
• Privacy is important to you
• You own property in multiple states
• You have complex distribution wishes
• You want to provide ongoing management for beneficiaries
• You have concerns about potential incapacity
• Your estate value exceeds $100,000

Many Floridians benefit from having both: a will to cover any assets not in the trust and to name guardians, plus a trust for probate avoidance and asset management.

The Florida Probate Process: What You Should Know

When a Florida resident dies with assets in their name alone, probate is typically required. This court-supervised process can be:

• Time-consuming (generally 6-12 months for simple estates)
• Expensive (involving court costs, attorney fees, and executor fees)
• Public (all documents filed become public record)
• Subject to potential contests or disputes

A primary advantage of proper trust planning is avoiding this process for assets held in trust.

FAQs:

What happens if I die without a will or trust in Florida?

If you die without estate planning documents (called dying “intestate”), Florida law determines how your assets are distributed, which may not align with your wishes. The court will appoint an administrator to manage the probate process.

How often should I update my estate plan?

Review your estate plan after major life events such as:

• Marriage or divorce
• Birth or adoption of children
• Significant changes in financial situation
• Moving to Florida from another state
• Changes in tax laws

Do I need both a will and a trust?

Many comprehensive estate plans include both instruments. A will can handle certain matters a trust cannot (such as naming guardians for minor children), while a trust offers benefits a will cannot provide (such as probate avoidance).

Planning for Your Florida Estate

Effective estate planning in Florida requires understanding your options and making informed decisions based on your unique situation. Whether you choose a will, a trust, or a combination of tools, the goal is to protect your assets and provide for your loved ones according to your wishes.

Regular review of your estate plan is essential, particularly after major life events such as marriage, divorce, births, deaths, or significant changes in assets or Florida law.

For personalized guidance on creating an estate plan that meets your specific needs, consider consulting with an experienced Tampa estate planning attorney.