Frequently Asked Questions About Revocable Trusts in Florida

Revocable trusts are a common estate-planning tool used by Florida residents to help manage assets both during and after their lifetime. While it is not especially difficult to create a revocable trust, there can be a number of potential legal implications if you do not properly understand how such trusts work. With that in mind, here are some common answers to frequently asked questions about revocable trusts in Florida.

Who Can Create a Revocable Trust?

Under Florida law, any person with the capacity to make a will can also make a revocable trust. “Capacity” in this context means the person is able to comprehend the nature and extent of their property, the relation to those who would naturally claim a substantial benefit from the trust, and a general understanding of the practical effect of the trust when executed.

Who Owns the Assets in a Revocable Trust?

When creating a revocable trust, you transfer assets to a trustee. The trustee then holds legal title to those assets. In most revocable trusts used for estate planning purposes, the person creating the trust–often called the grantor or settlor–is also the trustee. The trust documents will then specify who will take over as trustee when the original trustee dies or is otherwise unable to continue in that role.

Can a Revocable Trust Be Changed?

Yes. A “revocable” trust means that the grantor can amend, alter, or revoke the trust at any time while they are still alive. The trust documents can specify a method for revoking or amending the trust; otherwise, Florida law makes provisions for how to do these things. Keep in mind, however, that once the settlor dies, the trust generally becomes irrevocable, meaning no further changes can be made without court approval.

What Is a Trustee’s “Fiduciary Duty”?

A trustee owes a fiduciary duty to the beneficiaries of the trust. For example, if you create a revocable trust for the benefit of your children, your trustee owes a fiduciary duty to administer the trust assets in a manner that will benefit your children. If the trustee breaches that duty–such as by failing to carry out your instructions or using the trust to enrich themselves at your children’s expense–the trustee can be held personally liable for that breach.

Are Trust Assets Subject to Probate?

In general, assets placed in a revocable trust during the settlor’s lifetime are not considered part of that settlor’s probate estate when they die. That said, assets in a revocable trust may still be subject to creditor claims against the settlor and their estate.

Speak with a Pompano Beach Trust Litigation Lawyer Today

Managing a trust can get quite complicated, especially if legal disputes arise over how the trustee is handling things. If you are involved in such a matter and need legal advice or representation from a qualified Pompano Beach breach of fiduciary duties lawyer, contact the offices of Mark R. Manceri, P.A., today to schedule a consultation.