Revocable Living Trusts: Frequently Asked Questions (FAQ)
A revocable living trust is one of the most popular and effective estate planning tools. Though, there are plenty of myths and misconceptions regarding exactly how these trusts work. Below, our Tampa, FL trust planning lawyers answer five of the most frequently asked questions regarding revocable living trusts.
- What is a Revocable Living Trust?
A revocable living trust is a type of trust that is created by a grantor for the benefit of another party. When established, property must be placed within the trust and a trustee will manage it on behalf of a beneficiary. The key thing to know about a revocable living trust is that the grantor — the person who sets up the trust — retains full control over it during the course of their lifetime. They have the authority to change the terms of the trust or even revoke it altogether.
What are the Benefits of Setting Up a Revocable Living Trust?
Revocable living trusts offer a number of different advantages. To start, assets and property held within a revocable living trust will avoid Florida’s probate process. For many reasons, probate can be lengthy and frustrating. By using a revocable living trust to pass down inheritance, your beneficiaries will generally be able to access these assets without delay or disruption. Another important benefit of revocable living trusts is that they are fundamentally flexible. You retain full control over any property that you put in the trust.
- Are there Any Drawbacks to Using a Revocable Living Trust?
There are some limited drawbacks to using a revocable living trust instead of a will. Most importantly, the upfront costs are higher with a living trust than they are with a will. For a trust to be legally valid, it must be funded — this means that assets and property will need to be re-titled. For some people, creating a trust is simply not necessary.
- Is a Revocable Living Trust the Best Option for My Needs?
It depends on your specific situation. That being said, revocable living trusts are a useful estate planning tool for many people. They are not merely for the wealthy. If you are putting together an estate plan, it is always a good idea to discuss revocable living trusts with an experienced attorney. A trust planning lawyer will be able to help you explore all the available options.
- How Do I Set up a Recoverable Living Trust in Florida?
Under Florida law (Chapter 736 of the Florida Trust Code), there are strict rules and regulations that must be followed when creating a living trust. An estate planning lawyer will draft a trust document which names the beneficiaries and trustees. Then, all of the included property will be retitled. If you are interested in creating a living trust in Florida, you should work with a qualified attorney.
Consult With a Tampa, FL Trust Planning Attorney Today
At Bubley & Bubley, P.A., our Tampa estate planning lawyers have the skills and experience needed to help clients set up living trusts. To set up a fully private, no obligation consultation, please contact our law firm today. We represent clients in Tampa and throughout the surrounding communities.