How To Set Up A Trust In Florida: A Step-By-Step Guide

In this article, you can discover…

• The types of trusts available to you and your family in Florida.
• How to choose the right type of trust to protect your assets.
• How an attorney can help you build a truly comprehensive and tailored trust.

What Types Of Trusts Are Available In Florida?

There are several types of trusts, but for most estate planning purposes, the two primary categories are revocable trusts and irrevocable trusts.

Revocable Trusts

These are the most common. The person who creates the trust, called the grantor, can revoke or change the trust at any time. Typically, the grantor also serves as the trustee, which means they maintain full control over the trust assets, much like they would if the assets were in their own name. One of the main advantages of a revocable trust is that it allows assets to avoid probate.

Irrevocable Trusts

Less commonly used, these trusts cannot be altered once established. The grantor gives up control, meaning they cannot serve as the trustee or the beneficiary. However, this structure offers a key trade-off and benefit: asset protection from creditors.

How Do I Choose The Right Type Of Trust For Asset Protection?

Choosing the right trust depends on your specific goals, concerns, and the nature of your assets. And having a guide to setting up a Florida trust is truly invaluable given how complicated the process of setting one up can be. For instance, I recently met with a woman who owned four rental properties, each held in a separate LLC. She believed this setup protected her assets.

When I asked if she was the sole member of those LLCs, she confirmed she was. I explained that single-member LLCs are often vulnerable to creditors. In her case, we discussed transferring the properties into an irrevocable trust. This move would require a high degree of trust in the person who would take over control of the assets, someone like her son, whom she deeply trusts.

Todd Zuckerbrod, founder of Todd A. Zuckerbrod, P.A., has over 38 years of experience guiding clients through the often complex world of Florida estate planning.

As a seasoned attorney and former securities regulator, he brings a rare combination of legal insight and financial acumen to every trust he helps create. From protecting family legacies to preventing financial exploitation, Todd Zuckerbrod and his team have successfully helped countless individuals in Palm Beach County choose and structure the right trusts for their unique needs.

If you're unsure which trust is right for you, contact Todd A. Zuckerbrod, P.A. today.

What Are Common Mistakes People Make When Setting Up An Irrevocable Trust?

The biggest mistake people make with irrevocable trusts is to hand over control to someone you can’t fully trust. Unfortunately, I’ve seen clients create irrevocable trusts and assign control to their children, only to be mistreated or even cut off once the children gained authority over the trust. In some cases, the children misused the assets outright.

That’s why I always caution my clients: make absolutely sure the person you appoint as trustee is someone who will truly act in your best interest. If there’s any doubt, it’s worth entirely reconsidering.

What Is The Most Critical Element In Creating A Comprehensive Trust?

To use a metaphor: you want to put your assets in a concrete box, drop it to the bottom of the ocean, and throw away the key. Of course, this isn’t literal, but it captures the spirit of what a properly constructed trust should feel like: secure and untouchable.

Legally speaking, the most important aspect is ensuring the trust is both properly drafted and properly funded. Many people don’t realize that just signing trust documents isn’t enough. You also have to fund the trust by actually transferring assets into it. Without that step, the trust doesn’t truly exist in practice. In rare cases, this oversight can be a blessing in disguise. But generally, failure to fund the trust is a critical misstep.

Saving A Mother From Financial Exploitation

I had a client who was an elderly woman who created a trust. She then proceeded to open a trust account. Her daughter, unfortunately, was having an affair with the manager of the brokerage firm handling her finances. Together, they were scheming to misappropriate the woman’s money.

Fortunately, even though the trust documents were signed and the account was open, the woman had never transferred her assets into the trust. That oversight ended up saving her. Because the trust had not been funded, the transfer never legally took place, and she was able to stop the situation before any damage was done.

Of course, this is a simplified version of a more complex case—but it illustrates just how vital it is to set up and fund a trust properly.

Still Have Questions? Ready To Get Started?

For more information on guides to setting up a Florida trust, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (561) 652-7171 today.