Florida Probate Attorney

Avoiding Probate in Florida With a Living Trust

Posted on 21. May, 2011 by Admin in Probate Law

The standard document used to designate distribution of a person’s assets after death has always been a will. In recent years, living trusts have become more widely used, either in addition to a will or in place of one. The biggest benefit to a living trust over a will is the avoidance of probate.

Probate involves court supervision over settlement of an estate. Certain actions must occur before an estate’s assets can be distributed, and the court oversees each step. Probate expenses, including court costs, can significantly deplete an estate, although Florida has imposed limits on fees for executors and attorneys based on the value of an estate. Nevertheless, reduction of assets and delays in distribution affect beneficiaries. In Florida, probate typically lasts from four months to a year.

Creating a living trust, also called a revocable trust, bypasses many of these problems because title to an individual’s assets belongs to the trust. Without the need to determine or transfer title, distribution can occur without probate. However, knowing some facts about living trusts will help avoid costly mistakes:

• It’s imperative to put all titled assets in the name of the trust. Anything not owned by the trust must still go through probate.
• The formal transfer of property deeds and titles occurs while the individual is still alive; this can take time. However, beneficiaries will not be burdened in a time of loss.
• Access to accounts and other assets remains the same if the individual who funds the trust is also the trustee.
• Certain investments are exempt from probate even if they are not part of a living trust. These include life insurance, annuities that list explicit beneficiaries, and retirement or pension accounts.
• Non-titled assets, such as personal property and belongings, are included by designation of a document within the trust. Distribution lists can also be included but aren’t required.
• The actions necessary in the probate process, such as paying debts and filing taxes, still must occur. Without court involvement, however, time and expenses are both reduced.
• Living trusts can increase a married couples’ estate tax exemptions; the same benefit is not available for unmarried people.

Reviewing a living trust every few years will help ensure that all assets are properly included and that any new laws have been considered. Despite the time and care needed to set up a living trust, doing so helps ensure a smoother transition in settling an estate.

This article is provided as information only and not intended as legal advice in any means or manner whatsoever, the Law Offices of Adrian Philip Thomas provides focused legal counsel and representation within the area of Trust Planning and has provided this for informational purposes only.