Estate Planning

Revocable vs. Irrevocable Trust in Florida

In Florida, the primary difference between a revocable trust and an irrevocable trust is that a revocable trust can be amended or revoked during the settlor’s lifetime, while an irrevocable trust cannot. In terms of asset protection, a revocable trust is only rarely used as part of an asset protection plan, while irrevocable trusts are…

Does an IRS Tax Lien Attach to Irrevocable Trust?

Irrevocable trusts provide excellent asset protection for trust beneficiaries. Protection is codified in Florida statutes. Florida statute protect a beneficiary’s interests in irrevocable trusts that are either spendthrift trusts or discretionary trust. Florida statutes states that a a creditor cannot reach or force assignment of a debtor’s beneficial interest in a spendthrift trust. A spendthrift…

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Does a Spouse Automatically Inherit Everything in Florida?

In Florida, the term spousal rights refers to the ability of a spouse to automatically inherit certain property from their deceased spouse, whether or not they are provided for in a will. Some people have told us that they have not made a will or a testamentary trust because they had assumed their spouse would…

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Operating Agreement Can Avoid Probate of Florida LLC Membership Interests.

From time to time we receive inquiries about using limit liability companies to avoid probate of business interests and real estate. Some people believe that they can write terms and conditions in an LLC operating agreement that control the transfer of a member’s LLC interest after the member’s death. They believe that the deceased member’s…

Can Same Person Be Beneficiary And Sole Trustee of Florida Irrevocable Trust?

Any individual may be a trustee and a beneficiary of a trust assuming that the trust agreement names other lifetime beneficiaries or successor beneficiaries after the death of the initial beneficiaries. For example, suppose a client wanted to serve as trustee of an irrevocable trust created for his benefit. The client’s general attorney cautioned him that he…

Should I Transfer My Florida Homestead To My Living Trust?

Clients who prepare living trusts for estate planning frequently will ask me whether they should transfer the legal title of their Florida homestead property to the name of their living trust. If the property is transferred to the trust the successor trustee will transfer or dispose of the property after the death of the trustmaker…

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Utah Enacts Favorable Asset Protection Trust Statute

Only a few states have enacted asset protection trust legislation to provide creditor protection through a self-settled irrevocable trust. Those states with domestic asset protection trust (DAPT) statutes compete with one another by maintaining laws that attract investment assets to their state from people seeking asset protection benefits. In 2013, Utah enacted a revised domestic…