What is a Trust in Florida?
Understanding an Irrevocable and Revocable Trust.
Florida trust laws provide an ability to manage their property during their lives and the option to transfer
with ease after passing. The trust directs the trustee to manage the assets for your benefit in your lifetime,
then distribute them to the people you name as beneficiaries after you pass. You continue to use the assets
while you are living as if you still owned them.
*Some requirements: Per the Florida Statutes, section 736.0402. The settlor has the capacity to
create a trust; The trust must have a definite beneficiary; The trustee must have duties to perform; and. The
same person is not the sole trustee and sole beneficiary.
What is an Irrevocable Trust?
An irrevocable trust is an agreement between a settlor, trustee, and beneficiaries that cannot be revoked or
amended. The trust maker, or settlor, cannot take back property they transfer to an irrevocable trust. The
trust maker may not add or remove beneficiaries, nor can they change the terms and provisions of an
irrevocable trust agreement. A Florida irrevocable trust can also help reduce estate taxes for those who are
subject to the federal estate tax.
*An irrevocable trust must be executed properly to be valid.
What is a Revocable Trust?
Also known as “Living Trusts” or “Revocable Living Trusts”. It is a document that allows you to transfer
ownership of most of your assets from yourself to the Trust, with you or someone of your choice, named
as the Trustee.
It does require some administrative work but certain assets can avoid the probate process.