Does Creating a Revocable Trust Show “Intent” to Transfer Real Property?

It is common in Florida estate planning for individuals to transfer their real estate, including their homestead property (primary residence), into a revocable living trust. The trustee named in the trust takes over the legal title to the property and administers it as directed by the trust’s settlor. Typically, the trust itself–or at least an abstract summarizing its key provisions–is recorded together with a deed transferring title to the property.

Florida Probate Court Rejects Daughter’s Challenge to Late Father’s Trust

A recent Florida appeals court decision, Fuentes v. Link, examined a situation where a revocable trust was executed but not recorded during the settlor’s lifetime. This led to a legal dispute between the settlor’s daughter and his surviving spouse. In this case, the daughter was an adult child from a prior relationship.

The settlor apparently did not have a will. But he did execute a revocable living trust. As relevant here, the trust provided that the settlor’s spouse, acting as trustee, would hold and manage the settlor’s home while he was still alive. Upon his death, the trust instructed the spouse to distribute the property to herself.

The settlor later died. During the subsequent probate of his probate, the settlor’s daughter moved to “quiet title” to the residence. She maintained the trust was an “invalid conveyance” of the property. As such, the settlor continued to own the house as his sole property at the of his death. And since he died without a will, Florida intestacy law gives 50 percent of the estate to the decedent’s surviving children, in this case the daughter. (The other 50 percent goes to the surviving spouse.)

The probate court granted summary judgment to the surviving spouse, holding that as a matter of law the conveyance of the property to the trust was valid. The Florida Third District Court of Appeal agreed. Affirming the probate court’s ruling, the Third District noted that although the trust was not recorded during the settlor’s lifetime, it nevertheless contained sufficient language demonstrating the settlor’s “intent to convey” his house to the trust. And contrary to the daughter’s position, the mere fact her father’s trust was “revocable” during his lifetime did not create any sort of doubt regarding this intent. Indeed, the Court of Appeal pointed out, “Most revocable trusts aren’t revoked, but of course some are, and neither unremarkable proposition speaks to [the settlor’s] intent.”

More to the point, the daughter failed to present any evidence rebutting her father’s intent to place the property in trust, as demonstrated by the trust instrument itself. As such, the property belonged solely to the surviving spouse, as per the terms of the trust.

Contact Attorney Mark R. Manceri, P.A., Today

Family members excluded from a trust often feel like they should have legal grounds to challenge the trust itself. But as the case above illustrates, that is not always true. If you are involved in a similar dispute and need legal advice from a qualified Pompano Beach validity of trust lawyer, contact the office of Mark R. Manceri, P.A., today to schedule a consultation.

Source:

3dca.flcourts.gov/content/download/2436133/opinion/Opinion_2022-2053.pdf