Trusts are excellent estate planning tools, as they simplify the process of distributing someone’s assets to its heirs and beneficiaries upon death. However, life changes, and sometimes it may be necessary to revoke an already established trust.
Still, is it possible to revoke a trust? Yes, in case it is a revocable trust. In this article, you will discover how to dissolve a revocable trust in Florida.
Revocable vs. Irrevocable – Explaining the Different Types of Trusts in Florida
In essence, a trust is a legal arrangement in which a trustor (also known as a grantor) transfers a set of assets to a trustee, which can be an individual or entity. The trustee will have nominal ownership over the trustor’s assets named to the trust.
However, the trustee must act on the benefit of the trustor’s beneficiaries (fiduciary duty). Then, it is time to work with an expert trust attorney in Florida to tailor the ideal trust agreement.
A trust agreement is a document that outlines all the structure of the legal arrangement, providing all detailed information to guide the distribution of the assets held into the trust upon the trustor’s passing.
There are two main types of trusts used in Florida – irrevocable trusts and revocable trusts. As its name suggests, an irrevocable trust is a legal arrangement that does not accept modifications or amendments.
On the other hand, revocable trusts are much more flexible, as the trustor has the power to change, remove, or alter the assets held into the trust up until their passing. Also, it is possible to amend it, which includes changing the trust provisions or beneficiaries.
In Florida, many people use revocable trusts to transfer assets to heirs while avoiding probate. During the trustor’s lifetime, he/she is still in control of the estate held into the trust, as the property’s distribution occurs only upon the trustor’s passing.
How Do I Dissolve a Revocable Trust in Florida? – A Simplified Guide
Pay Attention to the Trust Agreement
It is impossible to dissolve a revocable trust in Florida without pouring over the trust agreement and identifying the method outlined in the provisions to revoke the trust. That is why it is fundamental to work with an expert trust attorney when drafting a revocable trust agreement.
However, what to do if the trust agreement has no provisions regarding the dissolution of the trust? In such cases, it is still possible to dissolve the trust.
Florida law provides that, unless the trust agreement states otherwise, all living trusts are revocable. Hence, Florida trustors have the right to terminate the trust as they wish, either as a whole or in part.
Exposing the Intention to Dissolve the Trust
The trustor(s) must expose the intention to dissolve the trust and provide feasible evidence that demonstrates the reasons to do so.
Then, the trustor must specify the type of property held into the trust, as well as the number of trustor(s), trustee(s), and beneficiaries involved in the arrangement.
If a trust has multiple trustors, one can dissolve only the part of the trust that encompasses his/her assets. Ultimately, to dissolve a trust completely, all trustors must manifest their intent to do so.
After identifying all parties involved, it is time to communicate with them. At this phase, it is crucial to send the trustee(s) a letter of notice of the intention to dissolve the trust.
Drafting and Signing the Paperwork
After notifying all individuals or entities involved in the trust, it is possible to sit down with an expert trust attorney to draft a legal document to dissolve the trust. In this document, the trustor(s) will express their intent to dissolve the arrangement.
After dating and signing the dissolution document in front of a notary, the trustor(s) must transfer the assets held into the trust to their respective owners.
How Do I Dissolve a Revocable Trust in Florida? – Work with Jurado and Farshchian, P.L.
Undoubtedly, the best way to dissolve a revocable trust in Florida is to work with an expert trust attorney in Florida. Get in touch with Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing Romy@juradolawfirm.com to schedule a consultation.