It’s important to plan for the future, especially if you’re going to leave something behind for your loved ones. In this article, find out more about transferring property to a trust in Florida.
In Florida, if you are a resident and own assets that are worth a lot, then you may benefit from placing those assets in a trust. A revocable living trust is one of the most common types of trusts used in Florida because it is easy to create and maintain.
What is a Revocable Living Trust?
A revocable living trust is a legal document that sets out how you want to manage your property while you are alive. When you die, the assets within it will be distributed to the beneficiaries stated in the trust. A revocable living trust can also be used as a means of avoiding probate courts after you pass away.
Examples of Assets that are Permitted to Transfer in Florida
If you are transferring assets to a revocable living trust in Florida, some of the items that can be transferred include:
- real estate
- bank accounts
- and other valuable assets
Guide for Transferring Real Property into a Living Trust
A living trust is a legal document that you can use to re-title assets over to the ownership of the trust instead of yourself. This can increase an estate’s liquid assets and decrease taxes, but also comes with limitations like loss of control over these assets.
A trust is one form of legal directive that can provide protection for owners and beneficiaries. In some cases, you may be able to reduce your taxes as well.
When planning your estate, a living trust ensures that you can use and access trust assets during your lifetime and provide for your care, should you become disabled. Transferring property to a trust in Florida also provides beneficiaries protection throughout your lifetime.
One thing that many people don’t realize about trusts is that they can be a crucial tool for individuals and couples considering divorce.
How to Prepare the Deed
An attorney should prepare a new deed for you if you want to transfer property into the name of your trust.
Learn more about working with an estate planning attorney here.
You can use one of the following deeds in Florida:
Warranty deeds are most commonly used for real estate transactions and do not require a title search or title insurance. The only requirement is that the rights of third parties need to be affirmatively cleared.
Quitclaim deeds are very different from the traditionally used warranty deed and offer minimal benefits in comparison. For example, a quitclaim deed does not guarantee someone’s ownership of the property. Consequently, it should only be used by family members or friends who know each other well to avoid any sort of dispute in the future.
Every deed requires meticulous documentation, including a legal description of the property, names of past owners, and new owner. Florida deeds should be witnessed by two people and notarized for legitimacy.
It’s important to complete the deed correctly and get it recorded right away. Items like your signer’s state of residence and the party transferring ownership are essential.
In Florida, a revocable living trust may be the best choice to transfer assets to avoid probate court. A revocable living trust can avoid probate court by providing that certain assets are held in trust for you and your heirs or trust-designated persons such as family members or caretakers. Unlike a will, which can only direct how property is transferred after your death, the revocable living trust allows you to name an advisor to make the decisions about who should receive your property when you die.
Need help navigating your estate planning strategy? Contact Casal & Moreno today.