Revocable Living Trust in Florida

Revocable Living Trust in Florida: What It Is, How It Works, and Whether You Need One

A revocable living trust in Florida is a legal arrangement in which you transfer ownership of your assets to a trust you control during your lifetime, then pass those assets to your chosen beneficiaries at death without going through probate court. Florida’s Florida Trust Code, Chapter 736, governs how these trusts are created, managed, and ultimately distributed. Avoiding probate is the primary reason Florida families choose a trust-based estate plan, but the decision involves tradeoffs worth understanding before you sign. At Bucelo Diaz Law, Alexis Bucelo Diaz works with Florida families to evaluate whether a revocable trust belongs in their estate plan and, when it does, to draft and fund the trust correctly so it actually delivers those benefits.

What Is a Revocable Living Trust Under Florida Law?

Under Florida Statutes §736.0103, a revocable trust is any trust that the settlor (the person who creates it) can revoke during their lifetime. In plain terms: you create a legal entity called a trust, transfer your assets into it, and serve as your own trustee. You keep complete control, continue to use your property exactly as before, and pay taxes on trust income under your Social Security number. Nothing changes day-to-day.

Three parties are involved in every trust, though during your lifetime they are often the same person. The grantor (also called the settlor) creates and funds the trust. The trustee manages the assets according to the trust terms. The beneficiaries receive the assets, either during the grantor’s lifetime or at death. Most people name themselves as the initial trustee and their spouse or an adult child as the successor trustee who takes over if they become incapacitated or die.

Florida Statutes §736.0402 sets out the five requirements for a valid trust: the settlor must have legal capacity, must intend to create the trust, must identify the beneficiaries, and the trustee must have enforceable duties. One person cannot simultaneously serve as sole trustee and sole beneficiary. These are not formalities. A trust that fails to meet these requirements is not legally valid and will not avoid probate.

The word “revocable” carries real legal weight. Under Florida Statutes §736.0602, you can amend or revoke the trust at any time while you are alive and have legal capacity, either by following the procedure in the trust document itself or through a method that shows clear and convincing evidence of your intent. This flexibility is the core feature of a revocable trust and also, as discussed below in the tax section, its key limitation for asset protection.

How a Revocable Trust Avoids Florida Probate

The Florida Florida probate process applies to assets titled in your individual name at death. When an asset is instead titled in the name of your trust (for example, “The Smith Family Revocable Trust dated January 1, 2025”), that asset is not part of your probate estate. Your successor trustee can distribute it to your beneficiaries under the trust terms, without filing a petition, without waiting for court approval, and without the process becoming a public record.

Privacy is a second meaningful benefit. Florida probate is a public court proceeding. Any person can search the probate docket and read your will, your asset inventory, and the names of your beneficiaries. A trust administration is entirely private. The Florida Bar’s consumer guide on revocable trusts notes this distinction as one of the primary reasons Florida residents choose trust-based plans over will-only plans.

Incapacity planning is a third advantage that many families overlook until it is too late. If you become incapacitated and your assets are held in a revocable trust, your successor trustee steps in immediately and manages those assets for your benefit, without any court proceeding. Assets held outside the trust may require a court-supervised guardianship proceeding even if you have a durable power of attorney in place, because some financial institutions will not honor a power of attorney for accounts they do not recognize as covered by it.

After your death, Florida Statutes §736.0813 requires your successor trustee to notify qualified beneficiaries within 60 days that the trust has become irrevocable, identify the trustee and provide their contact information, and advise beneficiaries of their right to request a copy of the trust and an accounting. This statutory notice requirement keeps beneficiaries informed while still preserving the private, out-of-court nature of trust administration.

One critical limitation: a trust only avoids probate for assets that have been properly transferred into the trust’s name, a process called funding. Real estate must be deeded into the trust. Bank accounts and investment accounts must be retitled. A trust that is never funded is a beautifully drafted document that does nothing to prevent probate. Funding guidance is part of the trust drafting work at Bucelo Diaz Law, not an afterthought.

A revocable trust does not eliminate the need for a will. Most Florida estate planning attorneys pair a trust with a “pour-over will,” which captures any assets that were left outside the trust and directs them into the trust at death. See FAQ #8 below for a fuller explanation, and our Florida will attorney page for details on how wills and trusts work together.

Revocable Trust vs. Will in Florida: A Side-by-Side Comparison

Neither a trust nor a will is inherently superior. The right answer depends on your assets, your family situation, and your goals. Most well-drafted Florida estate plans include both.

For married couples, a joint revocable trust for married couples offers an additional layer of coordination, allowing both spouses’ assets to be held in a single trust structure that each can control during their lifetimes and that addresses the surviving spouse’s administration at the first death.

Key Benefits of a Revocable Living Trust in Florida

Probate avoidance. This is the headline benefit. Formal administration in Florida is a court-supervised process that can take 12 months or longer for even straightforward estates. Funded trust assets skip that process entirely and can be distributed to beneficiaries in weeks rather than months.

Privacy. Trust administration is not a matter of public record. Your beneficiaries’ names, the assets you owned, and the amounts each person receives never appear in a court docket that a neighbor, distant relative, or creditor can read.

Incapacity protection. Your successor trustee can manage trust assets for your benefit if you are ill, injured, or otherwise unable to act. This works alongside, not instead of, a durable power of attorney, which covers assets and transactions outside the trust.

Multi-state real estate. If you own property in Florida and another state, a single revocable trust can hold title to both. Without a trust, your family would need to open a separate ancillary probate proceeding in each state where you owned real property, which multiplies the time, cost, and complexity of settling your estate.

Step-up in basis at death. Assets in a revocable trust receive a stepped-up cost basis at death under IRC §1014, the same as assets held in your individual name. This means your beneficiaries can sell inherited assets without owing capital gains tax on appreciation that occurred during your lifetime. For a deeper explanation of how the step-up in basis rule works for trust assets, see our dedicated resource page. This is one reason a revocable trust is generally preferred over gifting assets outright during life: gifts do not receive a step-up in basis.

When a Revocable Trust May Not Be the Right Choice

An honest assessment of any planning tool includes its limitations. Here are the situations where a revocable trust adds complexity without proportionate benefit, or where a different structure is more appropriate.

No creditor protection. This is the most important limitation to understand, and it must be stated directly: a revocable living trust does NOT protect your assets from your creditors during your lifetime. Because you retain the right to revoke the trust and reclaim the assets at any time, Florida law and federal law treat those assets as if you still own them outright for creditor purposes. If creditor protection is a priority, an irrevocable living trust in Florida may be a more appropriate structure. An irrevocable trust requires giving up control, but in exchange, the assets may be outside the reach of future creditors.

No Medicaid asset protection. Assets in a revocable trust count as the grantor’s resources for Medicaid eligibility purposes. If long-term care planning and Medicaid spend-down are concerns, a revocable trust does not address them. Medicaid-compliant planning involves different trust structures with different timing rules.

Funding burden. A trust that is never funded is an expensive piece of paper. Every asset you want to pass outside probate must be retitled into the trust’s name, and that retitling process requires attention at the time of drafting and again every time you acquire a new asset. Clients who are not prepared to manage that ongoing funding obligation may find a well-structured will with beneficiary designations accomplishes most of the same goals with less maintenance.

Simple estates with beneficiary designations. If substantially all of your assets already pass by beneficiary designation (retirement accounts, life insurance, payable-on-death bank accounts) or by joint tenancy with right of survivorship, a revocable trust may add complexity without delivering meaningful probate avoidance. A consultation will quickly identify whether your current asset structure already achieves most of your goals.

Revocable Trust and Taxes: What Florida Families Should Know

The following is general educational information. Bucelo Diaz Law does not provide tax advice. Please consult a CPA or qualified tax advisor regarding your specific income tax situation.

Income taxes during your lifetime. A revocable trust is a “grantor trust” under IRC §§671-679. That means the IRS treats the trust as if it does not exist for income tax purposes. All trust income, deductions, and credits flow through to your personal Form 1040. You use your own Social Security number; no separate trust tax return is required while you are alive and serving as trustee. Nothing changes about how you pay taxes when you create a revocable trust.

Federal estate taxes. A revocable trust does not reduce your federal taxable estate. Under IRC §2038, the right to revoke the trust means the assets remain in your gross estate for federal estate tax purposes. If your estate is large enough that federal estate tax is a concern, an irrevocable structure or other advanced planning technique is required. For the current federal estate tax exemption amount applicable in 2026 and beyond, see our dedicated page on federal estate tax exemption thresholds. We do not hardcode that figure here because the exemption amount has changed through legislation and is subject to further adjustment.

Florida state taxes. Florida has no state estate tax and no state inheritance tax. Florida also has no state income tax. Trust income earned by a Florida trust is not subject to any Florida state levy.

Step-up in basis. As noted in the benefits section above, assets held in a revocable trust at death do receive a stepped-up cost basis under IRC §1014, which is a meaningful income tax benefit for appreciated assets. This is one of the areas where revocable trusts hold a clear advantage over lifetime gifts. See how the step-up in basis rule works for trust assets for a complete explanation including how the rule interacts with joint ownership and community property.

How Much Does a Revocable Living Trust Cost in Florida?

Attorney fees for a revocable trust plan in Florida vary based on your family situation, the complexity of your assets, and which additional documents you need alongside the trust. A single person’s basic revocable trust differs in scope from a married couple’s coordinated plan that also includes pour-over wills, healthcare directives, and a durable power of attorney for each spouse. There is no single fee that applies to every client.

What the attorney’s time covers when drafting a Florida revocable trust: reviewing your existing assets, titling, and beneficiary designations; drafting the trust itself; explaining the funding steps and what you need to do to retitle each asset; and ensuring the trust coordinates with the rest of your estate planning. A trust that is drafted but not funded does not finish the work.

For context on what probate costs if you do not have a trust: Florida Statutes §733.6171 sets a statutory fee schedule for probate attorney fees in Florida based on estate value. For a $500,000 estate, the statutory presumptive fee is $15,000. For a $1,000,000 estate, it reaches $23,000. Those fees are for the attorney alone, before court filing fees, publication costs, and the personal representative’s own compensation. Many families find that a trust-based plan costs less in the long run than the probate fees their estate would otherwise generate.

What Happens to Your Revocable Trust When You Die?

At the moment of your death, your revocable trust becomes irrevocable. No one can alter its terms. The successor trustee you named in the trust document steps into your role and takes over administration of the trust assets.

The successor trustee’s job is to: (1) notify qualified beneficiaries of the trust’s existence and their rights, as required by Florida Statutes §736.0813 within 60 days of learning the trust has become irrevocable; (2) gather and value trust assets; (3) pay valid debts and expenses; and (4) distribute the remaining assets to beneficiaries according to the trust terms.

If the trust holds real estate in Florida, the successor trustee records a Certificate of Trust at the county property records office. The Certificate establishes the trustee’s authority to convey title without disclosing the entire trust document publicly. A deed is then recorded conveying the real property to the beneficiary or to a new entity, depending on the trust’s distribution instructions. This keeps title records clean and avoids the cloud on title that can result from a poorly administered probate estate.

The entire process occurs outside the courthouse. There is no docket number, no judge, no creditor publication period, and no court approval required for distributions. For most funded trusts, administration at death takes weeks to a few months rather than the 12-plus months that formal probate administration typically requires in Florida.

Working with a Florida Revocable Trust Attorney

An engagement with Bucelo Diaz Law begins with a consultation in which Alexis reviews your existing assets, family situation, and goals. Not every client needs a trust. Some arrive expecting to create one and leave with a different, better-suited plan. Others arrive with a simple will and learn that their out-of-state real estate or multi-state beneficiaries make a trust the more practical choice. The goal of the consultation is clarity, not a sale.

When a revocable trust is the right fit, Alexis drafts the trust. Many clients also add a pour-over will, a durable power of attorney, and a healthcare surrogate designation, but those documents are scoped and priced individually and added when the client’s situation calls for them, not bundled as a package. Funding guidance follows the trust drafting: a checklist of which accounts need to be retitled, how to handle beneficiary designations on retirement accounts and life insurance, and what to do when you purchase new property in the future. The trust you sign is only as valuable as the assets inside it.

Bucelo Diaz Law serves clients from offices in Weston, Ocala, and Naples, and advises clients throughout Florida. Alexis conducts consultations in both English and Spanish. Contact the firm to send a message, or use the scheduling link below to book a phone call directly.

About the Author

Alexis Bucelo Diaz, Esq., LL.M. is the founding attorney of Bucelo Diaz Law, PLLC. She holds a Master of Laws (LL.M.) in Estate Planning from the University of Miami School of Law and has more than 15 years of focused experience in Florida estate planning and probate. Florida Bar #86918. Selected to Super Lawyers Rising Stars in 2025.

This page is provided for general informational purposes only and does not constitute legal advice. Reading this page does not create an attorney-client relationship. Florida estate planning laws change regularly. Please consult a qualified Florida attorney about your specific situation.