How Do Trusts Work in Florida? 2025

It is vitally important for everyone who has considerable assets to make a plan for the distribution of those assets. Everyone’s estate plan is different and dependent on their individual needs. One of the most common ways to distribute assets to your loved ones is through a trust. Putting your assets in a trust can be a good way to avoid going through probate, among other legal hassles. You may be wondering: How do trusts work in Florida? In short, it depends on the kind of trust.

How Do Trusts Work in Florida?

A trust is an acceptable alternative to a last will and testament and is often a vital part of an estate plan. While a will allows you to list out your expectations and wishes for your assets after your death, a trust gives you the power to transfer your assets into a separate account that’s guarded by a designated trustee. An experienced New Smyrna Beach estate planning lawyer can help you put together a trust that lets you control your assets and provide for the specific needs of your beneficiaries.

By putting your assets in a trust, you are ensuring that those assets are used in a specific way and by a specific person. It’s not uncommon for people to use a trust to put together a college fund for their kids or to leave behind a charitable legacy that can’t be touched. Many people may use a trust to provide untouchable financial security to their minor or special needs heirs. A trust can stop certain financial predators from taking advantage of your beneficiaries who can’t fight back.

According to recent data collected by the U.S. Census Bureau, the median household income throughout New Smyrna Beach was approximately $78,000 per year as of 2023. Depending on your own household income, you may view this as a substantial amount that is worth preserving through an estate plan. Putting a portion of your assets in trust can allow you to avoid probate and certain tax liabilities.

When the time comes to put your estate plan into action, it may be important for your family to already be aware of your wishes and to execute them properly. Talking to your family about your wishes after death can feel morbid and uncomfortable, but these conversations are important to have early on.

Different Kinds of Trusts in Florida

When you are proactive with your estate planning, it can provide you with peace of mind and the knowledge that everything is being handled correctly. By choosing to put your money in trust, you can rest assured knowing the money is going to be used the way you intended, and nothing can be done to stop that. There are many different kinds of trusts used in Florida, and they all have a unique purpose. Here are a few of the trusts you may want to look into using:

• Living trust. A living trust lets you place your assets into a trust that exists as its own legal entity. You name yourself as the designated trustee, which means you are the only one who can modify the trust. You would then name a chosen successor to take over the trust once you have passed away. That successor then becomes responsible for passing the trust to the heir you always meant to receive it.
• Charitable trust. A charitable trust ensures that the assets you place within it go to a charity of your choosing. A charitable trust is irrevocable and can provide you with many distinct tax benefits.
• Special needs trust. It’s common to be concerned about your loved ones with special needs. You may want to set something up for them to be taken care of without worrying that someone could take advantage of them. By setting up a special needs trust, you can ensure that your designated assets will pass directly to your special needs loved one. You will designate a trustee to watch the trust, but the money belongs to your loved one.

FAQs

Q: Is a Trust a Good Idea in Florida?

A: Generally, a trust is considered a good idea in Florida. Whether or not a trust works for your financial future will depend entirely on your intentions. However, if you want your money to be well-protected and your assets to avoid probate, putting together a trust may be the most effective path forward for you. An estate planning lawyer can help you figure out whether a trust, a will, or a combination of the two would work for your estate.

Q: What Is the Biggest Mistake Parents Make When Setting Up a Trust Fund?

A: Generally, the biggest mistake that parents make when setting up a trust fund is putting their faith in the wrong trustee. A trustee is responsible for managing the trust and distributing funds in accordance with the terms of the trust documents. However, if that trustee decides to ignore the terms and do whatever they want, that money could be in jeopardy. Always give that power to somebody you trust.

Q: Should I Have a Lawyer Look Over My Trust Documents?

A: Yes, you should have a lawyer look over your trust documents. Setting up a trust can be complicated and involves multiple legal processes and documents. It’s recommended that you hire an estate planning lawyer to help you set up a trust, especially if you have never done it before and don’t know much about the overall process. The right lawyer can make all the difference.

Q: What Is the Average Cost of a Trust in Florida?

A: There is no telling what the average cost of a trust may be in Florida. Every trust is different, with each case having its own details that will influence the total amount your lawyer may charge for their services. The cost of establishing your trust will be determined by the complexity of your estate, the additional services you may require, and the resources your lawyer will have to dedicate to helping you.

Reach Out Today

At The Preston Law Firm, we can help you put together a strong trust. Contact us today to discuss your case with a valued team member.