For many Florida families, a Revocable Living Trust is promoted as a way to avoid probate and simplify the transfer of assets after death. Governed by the Florida Trust Code under Chapter 736, Florida Statutes, a revocable trust can provide significant benefits, but it is not a one-size-fits-all solution.

Whether you live in Southwest Ranches, Weston, Pembroke Pines, Sunrise, Cooper City, Miramar, Plantation, or Coral Springs, understanding how revocable trusts work can help you determine whether they should be part of your overall estate plan.

What Is a Revocable Living Trust?

A revocable living trust is a legal agreement created during your lifetime to hold and manage assets and provide instructions for their distribution after death.

The person creating the trust is called the grantor or settlor, while the person responsible for managing the trust assets is known as the trustee. In most cases, the creator initially serves as trustee and maintains complete control over the trust assets.

Because the trust is revocable, you may modify or revoke it at any time, provided you remain competent.

Benefits During Life

A revocable trust can:

• Allow you to retain control of your assets.
• Provide continuity of management if you become incapacitated.
• Allow a successor trustee to manage assets without court intervention.
• Potentially avoid the need for a guardianship proceeding.
• Provide privacy, since trusts generally are not public records.

What Happens After Death?

Following death, the successor trustee assumes responsibility for:

• Collecting and valuing trust assets.
• Paying debts, expenses, and taxes.
• Identifying beneficiaries.
• Making distributions according to the trust agreement.

Unlike a probate estate, the trustee does not need to be appointed by a court before acting.

Funding the Trust Is Critical

One of the most misunderstood aspects of trust planning is that creating a trust alone does not avoid probate.

Assets must be properly transferred—or “funded”—into the trust during your lifetime.

Common assets transferred into revocable trusts include:

• Bank accounts.
• Brokerage accounts.
• Non-qualified investments.
• Real estate.
• Business interests.

Failure to fund the trust may require probate despite having established the trust.

Many Florida residents in Weston, Southwest Ranches, Cooper City, Plantation, Miramar, Coral Springs, Sunrise, and Pembroke Pines discover after a loved one’s death that a trust existed, but the assets remained titled individually. In those cases, a probate administration may still be necessary.

What Is Probate?

Probate is the court-supervised process established under the Florida Probate Code for transferring assets owned solely in a deceased person’s name.

During probate, the court appoints a personal representative to:

• Gather assets.
• Notify creditors.
• Pay debts and taxes.
• Distribute remaining property to beneficiaries.

Florida also offers summary administration for qualifying estates, which may simplify the process when probate assets are limited.

Which Assets Avoid Probate?

Not all property requires probate.

Examples of assets that pass outside probate include:

• Property owned as tenants by the entirety between spouses.
• Joint accounts with rights of survivorship.
• Life insurance policies with named beneficiaries.
• Retirement accounts.
• Payable-on-death (POD) accounts.
• Transfer-on-death (TOD) accounts.
• Assets held inside a revocable trust.

How a Revocable Trust Avoids Probate

Because the trust owns the property, there is no need for the court to transfer ownership after death.

Instead, the successor trustee can immediately administer and distribute the trust assets.

However, even clients with revocable trusts should have a pour-over will, which directs assets accidentally left outside the trust into the trust through probate if necessary.

Can Your Florida Homestead Be Placed Into a Trust?

Yes.

For homeowners in Southwest Ranches, Weston, Cooper City, Plantation, Miramar, Sunrise, Coral Springs, and Pembroke Pines, transferring homestead property to a revocable trust is often appropriate.

However, special care must be taken to preserve:

• Constitutional homestead protections.
• Property tax exemptions.
• Restrictions on devise.
• Creditor protections.

Improperly transferring homestead property can create unintended consequences.

For that reason, deeds transferring Florida real estate into a trust should generally be prepared by an attorney familiar with Florida homestead law.

Does a Revocable Trust Eliminate Creditors?

No.

Under Section 736.0505, Florida Statutes, assets inside a revocable trust remain subject to the claims of the grantor’s creditors during life.

Upon death, trust assets may still be liable for creditors and expenses under Section 733.707, Florida Statutes and related provisions.

However, many trusts include spendthrift provisions under Section 736.0502, Florida Statutes, which may provide protection for beneficiaries after assets remain in trust.

Does a Revocable Trust Protect Against Florida’s Elective Share?

Generally, no.

Florida’s elective share law grants a surviving spouse the right to receive 30% of the elective estate pursuant to Sections 732.201–732.2155, Florida Statutes.

Importantly, revocable trust assets are generally included in the elective estate.

This means that simply placing assets into a trust does not disinherit a spouse or avoid elective share claims.

Does a Revocable Trust Save Estate Taxes?

Not by itself.

Because the grantor retains control over the assets, trust assets are generally included in the grantor’s taxable estate for federal estate tax purposes.

A revocable trust can, however, incorporate sophisticated tax-planning provisions, including:

• Credit shelter trusts.
• Marital trusts.
• Disclaimer trusts.
• Generation-skipping transfer planning.

The same strategies are generally available through wills, but trusts often provide greater flexibility and privacy.

Trustee Responsibilities

Serving as trustee is a significant responsibility.

Typical duties include:

• Holding trust property.
• Investing assets prudently.
• Maintaining records.
• Filing tax returns.
• Providing accountings.
• Communicating with beneficiaries.
• Making distributions in accordance with the trust terms.

Trustees are fiduciaries and must act in the best interests of the beneficiaries under Chapter 736, Florida Statutes.

Choosing a Successor Trustee

One of the most important decisions in any estate plan is selecting the person or institution that will manage the trust after incapacity or death.

Successor trustees may include:

• A spouse.
• Adult children.
• Trusted family members.
• Friends.
• Professional fiduciaries.
• Banks and trust companies.

The right choice depends on:

• Financial sophistication.
• Family dynamics.
• Complexity of the estate.
• Long-term administration needs.

Is a Revocable Living Trust Right for You?

For many families in Southwest Ranches, Weston, Pembroke Pines, Sunrise, Cooper City, Miramar, Coral Springs, and Plantation, a revocable trust can provide:

• Probate avoidance.
• Privacy.
• Incapacity planning.
• Multi-state estate planning.
• Greater control over distributions.
• Protection for younger beneficiaries and blended families.

However, trusts are only effective when properly drafted and properly funded. A revocable trust should be integrated with powers of attorney, healthcare directives, beneficiary designations, and other estate planning documents to ensure that all pieces work together.

Bottom Line

A revocable living trust can be a powerful estate planning tool, but it is not simply a document—it is a process. The effectiveness of a trust depends on proper design, proper funding, and regular review as your family and finances evolve.

If you live in Southwest Ranches, Weston, Cooper City, Pembroke Pines, Sunrise, Miramar, Coral Springs, or Plantation, and are considering whether a revocable living trust should be part of your estate plan, working with an experienced Florida estate planning attorney can help ensure your wishes are carried out and your family avoids unnecessary complications.

Frequently Asked Questions

Does a revocable trust avoid probate in Florida?

Yes, assets properly titled in the trust generally avoid probate.

Do I still need a will if I have a trust?

Yes. A pour-over will helps transfer any assets left outside the trust into the trust after death.

Can I serve as my own trustee?

Yes. Most people act as their own trustee during life and appoint a successor trustee to act upon incapacity or death.

Can a revocable trust protect assets from creditors?

Generally no. During life, assets in a revocable trust remain available to the grantor’s creditors.

Is a trust necessary for everyone?

No. Some individuals may be well served with a will and other planning documents. The best approach depends on family circumstances, assets, and goals.

Disclaimer

This article is intended for educational and informational purposes only and should not be construed as legal, tax, or financial advice. Reading this article does not create an attorney-client relationship with Cavalier Law Group. Every family and estate is different, and laws change over time. Individuals should consult with a qualified Florida estate planning attorney regarding their specific circumstances before making legal decisions. Cavalier Law Group serves families and business owners throughout Southwest Ranches, Weston, Pembroke Pines, Cooper City, Sunrise, Miramar, Plantation, Coral Springs, and surrounding communities throughout Broward County and South Florida.