a Florida Revocable Trust is a trust created during the life of an individual which can be modified, amended, or revoked at anytime during their life. Often they are used to:
1. avoid Florida Probate;
2. Keep your assets and decisions private;
3. Simplify after death distributions;
4. Increase the amount of the estate tax exemption for a couple;
5. Simplify the management of the beneficiary designations on property and other assets; and 6. Keep property separate in the case of a divorce.
The downside to a revocable trust is that assets are considered your personal assets in the case of creditors. There are techniques that can use a Florida Limited Liability Company (LLC) in conjunction with Florida Revocable Trust to protect assets. In most cases, these are not implemented and the trust by itself will offer no asset protection except in the case of a subsequent marriage and divorce.
A Florida Irrevocable Trust cannot be easily changed after the trust is created. It often takes consent of the creator, beneficiary, and trustee or judicial modification. A Florida Revocable Trust becomes irrevocable after the Settlor or Grantor dies. Florida Revocable Trusts are often used for:
1. Estate tax reduction;
2. Removing Life insurance proceeds from one’s taxable estate;
3. Asset protection for the creator;
4. Asset protection for the beneficiaries;
5. Charitable Estate Planning; and