In Florida, both trusts and wills are legal instruments used to manage and distribute assets after a person’s death. However, they serve different purposes and have distinct characteristics. Here’s a comparison of the main differences between a trust and a will in Florida:
Revocable Living Trust
1. Purpose: A trust is a legal arrangement where a person (the grantor or settlor) transfers their assets to a trustee to be held and managed for the benefit of specific beneficiaries according to the terms of the trust document.
2. Management: The trustee has a fiduciary duty to manage the trust assets in accordance with the trust’s provisions and for the benefit of the beneficiaries.
3. Probate Avoidance: One of the primary benefits of a trust is that it can help avoid the probate process. Since the assets are owned by the trust, they don’t need to go through the probate court, which can save time and expenses.
4. Privacy: Trusts provide more privacy compared to wills because they are not typically subject to public record requirements like probated wills.
5. Flexibility: Trusts offer greater flexibility in terms of asset management and distribution. They can be used for various purposes, including providing for minor beneficiaries, managing assets for disabled individuals, and more.
6. Revocability: It is revocable (can be changed or terminated by the grantor).
Will
1. Purpose: A will (also known as a last will and testament) is a legal document that outlines how a person’s assets should be distributed upon their death. It can also name guardians for minor children and appoint an executor to manage the estate during the probate process.
2. Probate Process: A will goes through the probate process, which is a court-supervised procedure to validate the will, pay off debts and taxes, and distribute assets to beneficiaries.
3. Public Record: Wills are typically subject to public record requirements, which means the terms of the will and the assets being distributed become part of the public record.
4. Distribution: Wills specify how assets are distributed after the payment of debts, taxes, and administrative expenses. However, this distribution is subject to the probate court’s supervision.
6. Revocability: A will can be revoked or modified by the testator (the person making the will) at any time before their death, provided they are of sound mind.
In Florida, as in most places, individuals often use a combination of wills and trusts in their estate planning strategies. The choice between using a trust or a will, or both, depends on factors such as the complexity of the estate, the desire for privacy, the need for probate avoidance, and the specific goals of the individual or family. Notably, one of the main “cons” of only doing a Will is the necessity of a oftentimes lengthy probate court process.
It is essential to consult with an experienced estate planning attorney in Florida to determine the best approach for your unique situation. Contact Martha Mendez today by calling 786-636-8938 or by email: [email protected] to discuss your options with respect to a Last Will and Testament and/or a Revocable Living Trust.
