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Florida Wills and Trusts - What happens with each

By David M. Goldman

Often the decision of whether to use a Florida Will or Florida Revocable Trust depends on issues surrounding distribution of assets, disability, and death. This summary of issues should help you determine which is best for your circumstances.

Privacy

What happens with a Will No privacy. All documents and proceedings after death are public.

What happens with a trust Totally private unless court intervention is required, usually due to improper drafting or lack of funding.

Disability Planning

What happens with a WillNo provisions for mental or physical disability. The disabled person is subject to the court process for guardianship and conservatorship. Can also use powers of attorney.

What happens with a trust Trusts privately handle assets upon disability without court intervention. Disability is determined privately by family members.

Tax Planning

What happens with a Will Available only if assets are correctly titled to pass through the probate process. Funding of trusts through the probate process will generally take longer and cost more than funding a living trust.

What happens with a trust If the trust is properly funded and continually updated for changes in the law and personal situations, tax planning is ensured. Funding of trusts is quicker and easier than trusts funded through the probate process.

Disposition of Assets

What happens with a Will Can be used for disposition of assets upon death either outright to beneficiaries or in trust. This is done through the probate process and generally takes longer and costs more than a living trust.

What happens with a trust Can be used for disposition of assets upon death either outright to beneficiaries or in trust. This is done privately and much faster because the probate process is totally avoided.

Creditor Protection

What happens with a Will None while alive. Creditors have only a specified amount of time to present claims or they are forever barred.

What happens with a trust None while alive. No creditor claim ?shutoff? period. However, most trusts provide that valid debts be paid.

Effort Required

What happens with a Will Less now unless you require tax planning and asset protection for your heirs; A great deal of work for your heirs after disability or death.

What happens with a trust More effort to properly design the trust to accomplish all of your goals today, upon disability and after death. Far less effort by heirs later.

Cost Now

What happens with a Will Usually small

What happens with a trust Moderate

Costs to Amend

What happens with a Will Usually small

What happens with a trust Usually small

Cost Later

What happens with a Will Can be small, but generally extremely high due to probate court intervention.

What happens with a trust Usually minimal if the trust has been fully funded and is properly maintained.

Full post as published by Florida Estate Planning Lawyer Blog on May 08, 2009 (boomark / email).