Are you a snowbird just returning to Florida for the winter? Some of my clients have their homestead in Florida; others declare their legal residence in another state. In either case, a Revocable Living Trust is very useful to avoid probate in both states. If you are a Florida resident, you can own your homestead property via a Revocable Living Trust without losing your homestead exemption.
In addition, you are eliminating the need for probate when you pass away. You can also transfer real estate owned in any other state to your Florida Trust. Generally, a Florida lawyer will prepare the Revocable Living Trust and Quit Claim Deed to transfer the Florida property into the Trust.
If you are a Florida resident, the lawyer will also prepare a new Florida Last Will and Testament called a Pourover Will. This provides for the transfer to your Trust upon your death of any other assets not in the Trust or which do not have beneficiaries already designated. It is a security blanket to cover any assets payable to your Estate. For example, if you were killed in a car accident due to the negligence of another driver, your Personal Representative would be able to settle your Estate’s wrongful death claim and “pourover” the proceeds into your Trust. If you are not a Florida resident, you can still create a Revocable Living Trust and execute a Quit Claim Deed to put your Florida property into the Trust. Your Last Will and Testament will be done by a lawyer in the state in which you have your legal residence. In addition, that lawyer can prepare a Deed to transfer the out of state property into the Florida Trust. You can also do the Trust in your state of residence and have a Florida lawyer transfer your Florida property to that Trust.
For Canadian citizens, there are possible tax aspects to be considered before you create a Florida Trust. These should be discussed with your Canadian accountant or tax attorney. In general, you will have to weigh the tax consequences versus the money and time that your heirs would save by avoiding probate in Florida.
Another favorable factor in creating a Revocable Living Trust is that you can always amend the Trust without having to change the Deed. In addition, once you create the Trust, you can always buy new properties in any state in the name of the Trust.
The Revocable Living Trust is recommended by most lawyers over a Deed which includes names of other persons, either as joint tenants, tenants in common or a Life Estate Deed. Once another person’s name is on a Deed, there are potential risks to you and your property. These include the possibility that the other person may undergo a divorce, bankruptcy, have a judgment against that person, or die before you or with you in a common accident. It may also affect your homestead exemption. All of these risks should be discussed with your attorney before deciding to put someone else’s name on your Deed. By contrast, the Revocable Living Trust eliminates those risks, since no other name is on the Deed. You simply transfer it from yourself to yourself as Trustee of your Trust.
This article covers only some basics regarding Revocable Living Trusts and Deeds. For further information, please feel free to contact me.
Please feel free to call me for a free phone or personal consultation regarding any issues pertaining to Wills, Trust, Deeds, Probate, Power of Attorney or Health Care Surrogate. I am also available for a free consultation regarding personal injury claims or to explain car insurance coverage. Call me at 954-569-4878. My address is 3275 W. Hillsboro Blvd., Suite 204, Deerfield Beach, Florida 33442. My web site is http://www.martinzevinpa.com. My e-mail address is martinzevin@ netzero.com.
