As Wills, Trusts & Estates Attorneys, we are often asked what Is A Florida Revocable Trust And Why Is It Important? A Florida revocable living trust is a legal document used to facilitate the administration of your assets during your lifetime and to distribute the assets remaining in your estate after you pass on. There are three primary parties that are present in every revocable trust including the “grantor” also known as the “settlor”, the “trustee” and the “beneficiary” or “beneficiaries”. The grantor/settlor is the person that is responsible for creating the trust. The trustee is the individual or entity that is responsible for the management of the trust, and finally the beneficiaries are those that are entitled to receive assets from the trust.
In many cases, the grantor elects to also be the trustee, and generally will serve as the trustee until such time as the grantor is no longer willing or able to serve. From a practical standpoint, this makes sense for many of our clients because it gives the person that created the trust (grantor) the ability to make decisions regarding the trust’s administration during the grantor’s lifetime.
At some point subsequent to the creation of the trust, the trust will need to be funded. Assets such as bank accounts, investments and real property are the types of assets that are typically used to fund the trust, which just means that the assets are formally transferred into the trust. On the other hand, there are certain assets that you do not want to transfer into your trust because of the possibility of unwanted financial problems. During your lifetime as the grantor of the trust, the trustee will administer the assets contained in the trust. Once the grantor (or grantors in the case of a married couple that created the trust together) passes, the trust becomes irrevocable and the terms of the trust can no longer change.
One of the main reasons that revocable living trusts initially became so popular was their ability to permit the grantor’s estate from having to be probated. Probate is the process of administering an individual’s estate after they pass, but the administration is handled by the court. Probate can be time-consuming and expensive, which is why many people choose to create a trust so that their estate will be administered by the trustee that they have hand-selected rather than a judge.
The Wills, Trusts & Estates Attorneys at The Law Office of Ryan S. Shipp, PLLC, are more than happy to evaluate your needs and put together an estate plan specifically suited for your needs. Our office is located in Lantana, Florida. We serve clients in Palm Beach County and throughout the great state of Florida. Call us today @ 561.699.0399.
Like this Blog? Please see below links to our other Wills, Trusts & Estates Blog Posts
- Is A Florida Pour-Over Will Different Than A Regular Will?
- What are the duties and obligations of a trustee under Florida Law?
- What is a Florida Revocable Trust and Why is it important?
- Why is a Florida Last Will and Testament Important?
- Florida Special Needs Trusts
- Different Types of Florida Powers of Attorney
- Persons Associated with Florida Trusts
- Revocable vs Irrevocable Trust Florida
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