WHAT IS A FLORIDA REVOCABLE TRUST
A Florida Revocable Trust manages and secures your assets during your lifetime. It distributes your assets to identified beneficiaries upon your death. Most people find a revocable trust appealing because your estate avoids the lengthy probate process. The Grantor (you) can modify or terminate a revocable trust.
CREATING A FLORIDA REVOCABLE TRUST
The Grantor creates the trust and the Trustee manages it. The Grantor often serves as the initial Trustee, but you can appoint another person, bank, or private trust company to serve as Trustee. The trust is funded by transferring assets to it. This requires retitling assets in the name of the trust. You also need to obtain an IRS tax identification number for the trust.
You will know if you properly funded your trust by examining bank statements, investment statements, deeds, etc. Each trust-owned asset will bear the name of the trust or identify the Trustee.
During your lifetime the Trustee invests and manages the trust property. Most trust agreements allow the Grantor to withdraw money or assets from the trust at any time and in any amount.
The trust identifies beneficiaries of your estate and the manner in which they will receive their inheritance. Upon your death, the Successor Trustee will file a Notice Of Trust with the Clerk of the Court and begin paying estate debts and distributing assets to the beneficiaries pursuant to the terms of the trust.
POWERS AND RESPONSIBILITIES OF THE TRUSTEE
The Trustee’s exact powers and duties should be specifically defined in the trust agreement. But, in general, the Trustee will have the authority to:
a) Hold trust property
b) Invest the trust assets
c) Distribute trust income and/or principal to the beneficiaries, as directed in the trust agreement
d) Make tax decisions regarding the trust
e) Keep records of all trust transactions
f) Issue statements of account and tax reports to the trust beneficiaries
g) Keep the Grantor and beneficiaries advised as to the status of the trust
As you can see, the role of the Trustee is important and is a very responsible position. You should choose your Trustee carefully.
TAMPA TRUST LAWYER KEVIN A. FULLER
If you are considering creating a trust to manage your assets during your lifetime and distributing them following your death, please feel free to call The Fuller Firm, LLC.