Revocable Living Trusts Lawyer

Implementing secure estate planning while keeping control over your assets sounds enticing, right? But, sadly, the option of traditional wills doesn’t grant much freedom over your assets once the will is written.

 

So, what are your options, then?

 

A revocable living trust is a powerful tool that grants greater benefits when compared to other options, and a Florida revocable living trusts lawyer can help you with one.

 

Sure, estate planning can be a complex and overwhelming process. However, revocable living trusts can ease your worries by offering numerous benefits, such as avoiding probate, protecting your privacy, and allowing for seamless asset management in the event of incapacity.

 

A revocable living trust is a popular option for many individuals in Florida, allowing them to maintain control over their assets while providing flexibility and privacy. As a trusted revocable living trusts lawyer in Florida, Colby Roof can guide you to create, manage, and maintain a revocable living trust. In this article, we’ll discuss important aspects of revocable living trusts and how a living trust attorney can help you.

 

To fully maximize these benefits and ensure your trust is properly executed, speak with a knowledgeable, revocable living trusts lawyer. Book your free consultation today with Colby Roof. 

What Is a Florida Revocable Living Trust?

A Florida revocable living trust, also referred to as a revocable trust or sometimes just a living trust, is a powerful estate planning tool that allows individuals to manage and distribute their assets during their lifetime and after their death.

 

Additionally, RLTs help in regulating estate tax, which can be a handful at times.

 

This trust type is particularly useful for individuals seeking control, flexibility, and efficient asset management in their estate planning while also ensuring a seamless transition of their assets to chosen beneficiaries. A living trust helps in avoiding the probate process by direct transfer of assets to the beneficiaries.

 

The trust is called “revocable” as it gives the grantor or trustor complete control over the assets in the RLT trust, i.e., they can change or modify the terms & conditions of the trust, exempt beneficiaries, or can even revoke the trust if the conditions come to that. Moreover, upon the passing of the grantor, revocable living trusts become irrevocable.

Client filling out the form with her daughter.

How to Create a Revocable Living Trust

Creating a revocable living trust is a crucial step, and one must make sure to do it with utmost care to avoid any legal problems in the future. Following are the steps one should go through while creating revocable living trusts:

1. Set Clear Objectives

The foremost requirement to create a RLT trust is to go through the goals and objectives you want to achieve through estate planning. Ask yourself what assets you want to put in trust, who should be the beneficiary and trustee, how you want to distribute your assets and other necessary questions.

It’s important to know what you actually want to achieve through a living trust and whether it aligns with your wishes and needs.

2. Consult an Attorney

Once you’re clear about your goals, then consult an estate planning lawyer who will walk you through all the complexities of living trusts. Moreover, they will give you a clear picture of your asset management and any other precautions that must be taken regarding Florida state laws.

3. Draft a Trust Agreement

The most crucial part of creating a living trust is to draft a legal trust document that states all the terms and conditions precisely in writing. This document will cover detailed information about the assets an individual is putting in a trust, the names of the beneficiaries, and the successor trustee.

4. Fund the Trust

After the trust agreement is prepared, the next step is to fund the trust. This involves transferring ownership of your assets into the trust’s name. The process of funding may include the following:

 

  • Changing the title of real estate to reflect the trust as the owner.
  • Re-registering bank accounts, investment accounts, and securities in the name of the trust.
  • Updating the ownership of personal property, such as valuable collectibles or art.

5. Review and Update

A revocable living trust is a dynamic estate planning tool. It’s important to periodically review and update your trust as your circumstances change. Life events such as marriage, divorce, the birth of children or grandchildren, changes in financial status, or alterations to your wishes may necessitate trust amendments.

Key Elements of Revocable Living Trusts 

A revocable living trust consists of several key elements:

1. Grantor (Settlor or Trustor)

The person who is responsible for establishing a trust and further funding a trust is known as the grantor or settlor. The settlor can be an individual, organization, or couple. A trustor transfers the assets to a trust and retains its ownership, allowing the trustor to revoke and amend the trust for their lifetime.

2. Trustee

The trustee is the person or entity responsible for managing the trust and its assets. Initially, the grantor often serves as the trustee, maintaining control over the trust. You can appoint a successor trustee to take over in case of incapacity or passing.

A successor trustee could be anyone, children, spouse, or someone professional such as an estate planning attorney. In fact, you can name the same person as the trustee, who is also your power of attorney.

3. Beneficiaries

Beneficiaries are the individuals or entities who will receive the trust’s assets after your passing and according to the terms you’ve specified in the trust agreement. You have the flexibility to name multiple beneficiaries and outline the distribution of assets in great detail.

4. Assets

You can place various types of assets into the trust, including real estate, bank accounts, investments, personal property, and more. These assets are collectively referred to as the “corpus” of the trust.

5. Trust Agreement

The trust agreement is a legally binding document that outlines the terms and instructions for the trust. It specifies how the trust is to be managed, how assets are to be distributed, and any other conditions or restrictions you want to impose.

The trust agreement is the foundation of the trust and should be drafted carefully by a qualified attorney to ensure it aligns with your wishes and is legally valid.

6. Funding

Funding the trust involves transferring ownership of your assets into the trust’s name. For example, if you have a house, you would transfer the real estate deed to the trust. Bank accounts and investments can be re-registered in the name of the trust. Funding is a crucial step to ensure that the trust’s terms govern the assets.

How Does a Revocable Trust Work?

After drafting a trust agreement that aligns with your wishes and needs, and getting an official benchmark on it by signing it along with the witnesses, a living trust becomes active. Being a revocable trust, a grantor or trustor (which is you) has all the rights to revoke or change the trust, whether it’s about the beneficiaries, assets, or terms of the trust.

 

While drafting a living trust’s legal document, it should have the name of the trustee (a person who has the right to look into the legal matters of a living trust and take action on behalf of a settlor). Usually, a grantor is a trustee until or unless the document specifies otherwise. As the grantor passes away, the role of successor trustee comes into play.

 

While you’re alive, the trust is a revocable one, but upon your passing, it becomes an irrevocable trust, and no more changes can be made to the trust. The official signing of the trust gives it the status of a separate legal identity. Therefore, after the grantor passes, the trust is a legal person, which saves it from going into the probation process, giving no rights to a probate court to indulge in the transfer of assets to beneficiaries.

The Pros and Cons of a Revocable Living Trust


 
The advantages of having a revocable living trust in your estate plan are numerous:

 

1. Flexibility and control. With a revocable living trust, you maintain control over your assets during your lifetime. You can make changes to the trust or even dissolve it if your circumstances change.

 

2. Privacy. Unlike a will, a trust is not subject to public disclosure. This means that the details of your assets and distribution plans can remain private.

 

3. Avoiding probate. One of the most significant benefits is the avoidance of the probate process. Probate can be lengthy, expensive, and a public affair, whereas assets held in a trust can be distributed to beneficiaries quickly and with minimal cost.

 

4. Smooth transition. The trust provides a seamless transition of assets to your beneficiaries. It eliminates the need for court involvement and the potential for disputes that can arise during probate.


 
5. Continuity. In the event of your incapacity or illness, a successor trustee you’ve named can step in and manage the trust, ensuring your financial affairs are in order.

While revocable living trusts offer several advantages, they also have some disadvantages, including:

 

  1. Cost and complexity. Setting up a revocable living trust can be more expensive and complex than a simple will. Legal and administrative fees are involved in creating and maintaining the trust.
  2. Ongoing maintenance. A living trust requires ongoing management, including transferring assets into the trust and updating it as your financial situation changes, which can be time-consuming.
  3. No estate tax benefits. Unlike certain irrevocable trusts, a revocable living trust does not provide estate tax reduction benefits.

Revocable Living Trust FAQs

How Much Does a Living Trust Cost?

The cost of setting up a living trust can vary widely depending on factors like your location, the complexity of your estate, and the attorney’s fees. On average, you can expect to pay anywhere from a few hundred to several thousand dollars.

Can a Living Trust Reduce Estate Taxes?

A living trust primarily helps in avoiding probate and streamlining asset distribution but doesn’t offer significant estate tax reductions on its own.

Can I Change the Trust After I Set It Up?

Yes, a revocable living trust is called “revocable” because you can make changes or even revoke it at any time during your lifetime.

Do I Need a Lawyer for a Living Trust?

To ensure your trust is legally sound and tailored to your specific circumstances, it’s highly advisable to consult with an experienced estate planning attorney.

What Is the Difference Between a Living Trust and a Living Will?

The difference is that a living trust deals with financial matters and asset distribution, whereas a living will addresses medical and end-of-life decisions.

Get in Touch with a Florida Revocable Living Trusts Lawyer 

Enhance your estate planning with the revocable living trust—a strategic tool that speeds up asset distribution while avoiding lengthy probate. Consult with Colby Roof, an experienced Florida revocable living trusts attorney who crafts tailored trust solutions for optimal asset protection and tax efficiency. Schedule your consultation today to start securing your family’s financial future.

 

 

The contents of this article are not comprehensive, they provide only a general overview of the subject matter discussed. This article does not establish a client-attorney relationship with the reader, and no legal decisions should be made based on the article’s contents. Because every legal matter arises under unique facts specific to the client, no legal decision should be made without consulting a licensed attorney.

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