Revocable Living Trust

A living trust accomplishes the same purposes as a will. In other words, it is a means of leaving assets to another person or persons. However, unlike a will (which only takes effect at your death), the living trust takes effect immediately.

This makes it much more flexible in estate planning. For instance, we have clients who feel very strongly about being placed in a nursing home. In a trust, it is possible to provide that you will not be placed in a nursing home unless it is medically necessary. You can command the trustee to maintain you in your own home in the style to which you are accustomed, even if it means running through all of your assets.

Also, if you intend to leave assets to another person in trust, rather than to leaving it to them outright, the living trust is a convenient vehicle for doing so. Unlike a testamentary trust (a trust established through your will) the living trust can be made to continue beyond your death and provide for your heirs for whatever time parameters you choose. Living trusts are advisable for persons who own out-of-state property. The Florida courts only have jurisdiction over Florida property, so you might have to open multiple probates - a revocable living trust avoids this.

A living trust is more expensive to set up than drafting a will. However, it eliminates the time and expense of probate. If the living trust is properly funded, there will be no need to open a probate estate - the trustee can simply carry out your wishes without court oversight.

After it is created, the trust is as easily amendable as a will and can be made a beneficiary of a life insurance policy, pension plan or IRA.