What is a revocable trust?

A revocable trust is a document created by your attorney, which manages the assets placed into the trust during your life and also controls the disposition of those assets at your death.

The revocable trust is popular in Florida as a vehicle to avoid the probate process. Probate is the process of distributing what you own at your death to those who survive you. The process can be a bit expensive for your estate and therefore more and more individuals are seeking to save some of those expenses by using a revocable trust.

All trusts must have a grantor (you, the creator) and a trustee (usually another person or institution, but sometimes you, who manages the trust). The trustee manages the property placed into the trust for the benefit of the beneficiaries of the trust.

It is important to know that any asset that you wish to be controlled by the trust agreement must actually be placed into the trust. If an item is not placed into the trust then the trust has NO IMPACT upon the item at life or at your death. This includes your bank accounts and real estate among other things.

While you are alive the trust agreement controls the property in the trust. Normally, the grantor will retain the ability to take money from the trust and to invest in their choice of vehicles. It is fully flexible at creation and of course, it is revocable and therefore can be eliminated at any time.

At death, the trustee (or successor trustee) will distribute the property from the trust per the trust language - thereby avoiding probate on those items.