Trusts are a very useful tool and flexible tool in estate planning. This document gives someone the ability to dictate how certain assets are managed and distributed. This may include providing income for people with disabilities, providing care for family members, and more. Trusts can also help reduce probate and taxation on your estate.
The estate planning lawyers at Di Pietro Partners specialize in legal matters involving Florida trusts. These legal matters include:
- Establishing Trusts
- Special Needs Trusts
- Taxation Avoidance Using Trusts
- Legal Disputes Involving Trusts
- Trust Administration
- Probate and Trusts
If you or a loved one need legal assistance with trusts in Florida, contact one of our experienced lawyers for a free consultation.
Types of Florida Trusts
Numerous types of trusts exist under Florida law. These trusts fall under two main headings: revocable or irrevocable. Most trusts are revocable which means they can be modified at any time during the life of the person establishing the trust if they have the mental capacity to make changes. A revocable trust is a fiduciary arrangement that allows a trustee (third party) to hold assets on behalf of a beneficiary.
Of course, trusts are set up in various ways and may affect assets during a person’s life or establish how estates are distributed upon an individual’s passing. Florida Statutes (Chapter 736) govern revocable trusts and must be drafted by a licensed attorney.
Florida Law Regarding Trusts
Each State has specific statutes that apply to how to set up trusts. Florida does recognize the validity of a trust legally executed in another state; however, any trust written in Florida must follow certain state laws. The following facts apply to Florida Trusts.
- The purpose of a trust must be lawful and possible to achieve.
- A trust may be designed as a “charitable trust.”
- Some people set up trusts to care for living pets that is allowed under Florida law.
- A trustee may receive reasonable compensation for handling an estate.
- A trustee must follow the Florida Trust Code and the terms of the trust.
- A trust may avoid Probate Court if properly drafted and not contested.
- A revocable trust becomes irrevocable upon the death of the person who established the trust.
- Transferring homestead property to a trust is very tricky and requires expert legal advice.