Is Your Revocable Living Trust Actually Doing Its Job?

At The Soto Law Office, we often meet clients who believe that having a Revocable Living Trust means their loved ones will never have to go through probate. While a trust can help avoid probate, it’s not automatic. The trust has to be properly funded to work as intended.

A trust only governs assets titled in the name of the trust. If an asset isn’t retitled into the trust or doesn’t have a beneficiary designation, it may still have to go through probate under Florida Statute Chapter 733.

Example: Let’s say your mother created “The Revocable Living Trust of Jane Smith dated January 1, 2010.” She also had a savings account at her local bank. If the account was retitled in the name of the trust, it’s a trust asset and will be distributed according to the trust’s terms. But if the account was still in her individual name, it’s not a trust asset—unless it had a payable-on-death (POD) or transfer-on-death (TOD) designation.

If there’s no beneficiary designation and the account is just in her name, the asset will pass according to her will or, if no will exists, Florida’s intestate succession laws (Fla. Stat. §§732.101–732.111). If the will is a “pour-over will,” those assets can be transferred into the trust after probate.

Key takeaway: A trust is only as effective as the work put into funding it. This means:

• Retitling bank accounts, investment accounts, and real estate into the trust’s name.

• Updating beneficiary designations on accounts that remain outside the trust.

• Reviewing your trust regularly to ensure new assets are properly included.
  

If your trust isn’t fully funded, your loved ones may still face the time and expense of probate—exactly what you were trying to avoid.

At The Soto Law Office, P.A., we can help you set up, review, and fund your trust so it works the way you intend.

Call us at (321) 972-2279

Visit www.TheSotoLawOffice.com

Make sure your trust can be trusted.