St. Augustine Trusts Attorney

Helping Families & Individuals Set Up, Administer & Litigate Trusts

Trusts are a highly effective and versatile estate planning tool. They can be used to avoid probate, protect assets from creditors, and minimize estate taxes. They can also be used to provide for a special needs loved one and ensure that your minor children are cared for if you are no longer able to do so.

At Owenby Law, P.A., we have extensive experience helping clients set up, administer, and litigate various types of trusts. Our St. Augustine trust lawyers are also highly skilled in the areas of asset protection and estate tax planning. We can help you create a solid estate plan that will protect your assets and your best interests, both now and in the future.

Get in touch with us today to learn more about our St. Augustine trust services. Call (904) 674-8779 or contact us online to request a consultation.

Common Types of Trusts

A trust is a legal arrangement in which one party (the trustor or settlor) transfers assets to another party (the trustee) for the benefit of a third party (the beneficiary). Trusts are established for various purposes, including estate planning, asset protection, and the management of financial affairs. The terms of the trust are outlined in a legal document called the trust deed or trust agreement.

In Florida, as in many other jurisdictions, there are several common types of trusts. Here are some of them:

• Revocable Living Trust: Allows the trustor to maintain control over their assets during their lifetime. It can be modified or revoked by the trustor. A revocable living trust avoids probate for the assets held in the trust.
• Irrevocable Living Trust: Cannot be easily modified or revoked by the trustor. It provides potential tax benefits and asset protection. Irrevocable trusts are often used for charitable giving, Medicaid planning, or minimizing estate taxes.
• Testamentary Trust: Created through a person's will and only comes into effect after the person's death. This allows for the distribution of assets over time or for specific purposes.
• Special Needs Trust (SNT): Designed to provide for individuals with disabilities without jeopardizing their eligibility for government benefits. This allows for the management of funds to enhance the quality of life for the person with special needs.
• Charitable Remainder Trust (CRT): Allows the trustor to donate assets to a charitable organization while retaining an income stream for themselves or other beneficiaries.
• Charitable Lead Trust (CLT): Provides income to a charitable organization for a specified period, after which the remaining assets go to non-charitable beneficiaries.
• Marital Trust: Created to provide for a surviving spouse. This trust can qualify for the marital deduction, which may reduce estate taxes.
• Credit Shelter Trust (CST) or Bypass Trust: Designed to make use of the estate tax exemption for both spouses. It minimizes estate taxes by dividing the estate between a surviving spouse and the trust.
• Dynasty Trust: A long-term trust that spans multiple generations, intended to preserve wealth and minimize estate taxes.

Benefits of Establishing a Trust

Here are some common advantages associated with creating a trust:

• Probate Avoidance: Assets held in a trust can often bypass the probate process, leading to a faster and more private distribution of assets after the trustor's death.
• Privacy: Unlike wills, trusts generally do not become public record, providing a greater degree of privacy for the trustor and beneficiaries.
• Asset Management and Protection: Trusts can be effective tools for managing and protecting assets. For example, an irrevocable trust may shield assets from creditors or legal judgments.
• Incapacity Planning: Revocable living trusts can provide for the management of assets in the event the trustor becomes incapacitated, avoiding the need for court-appointed guardianship.
• Flexibility: Trusts offer a high degree of flexibility in terms of how assets are managed, distributed, and utilized for the benefit of beneficiaries.
• Tax Planning: Certain trusts, such as irrevocable trusts, can be used for estate tax planning, helping to minimize tax liabilities and maximize the inheritance passed on to beneficiaries.
• Special Needs Planning: Special needs trusts allow individuals to provide for a loved one with disabilities without jeopardizing their eligibility for government assistance programs.
• Control Over Distribution: Trustors can dictate specific conditions or timelines for the distribution of assets to beneficiaries, ensuring that the assets are used in a manner consistent with their wishes.
• Continuity of Management: Trusts provide a seamless transition of asset management and distribution in case of the trustor's death or incapacity, avoiding delays and uncertainties.
• Family Wealth Preservation: Dynasty trusts, designed to last for multiple generations, can help preserve family wealth by minimizing estate taxes and providing ongoing financial support.
• Avoidance of Forced Heirship Rules: In some jurisdictions, trusts can be used to bypass forced heirship rules, allowing individuals to distribute their assets according to their preferences rather than legal mandates.
• Charitable Giving: Charitable trusts, such as charitable remainder trusts, enable individuals to support charitable causes while receiving income or tax benefits during their lifetime.
• Marital Deduction: Marital trusts can help maximize the use of the marital deduction, reducing estate taxes by providing for a surviving spouse.

FAQs About Trusts in St. Augustine, FL 

Do I still need a will if I have a trust?

Yes, you should still have a “pour-over will” even if you have a trust. This type of will acts as a backup to catch any assets that were not properly transferred into the trust during your lifetime. It ensures those remaining assets "pour over" into the trust upon your death and are distributed according to the trust's terms. Having both a trust and a pour-over will in Florida ensures a comprehensive estate plan that avoids unintended consequences.

How do I fund a trust?

Funding a trust involves transferring ownership of your assets into the name of the trust. This can include retitling real estate, transferring bank and investment accounts, and assigning ownership of personal property. In Florida, proper funding is critical—unfunded or improperly funded trusts won’t avoid probate. 

Can I make changes to my trust after it’s created?

Yes, if your trust is revocable, you can amend or revoke it at any time while you are mentally competent. This flexibility is one of the main advantages of a revocable living trust. In contrast, an irrevocable trust is much more difficult to change once it’s established. If your life circumstances have changed—such as a marriage, divorce, or new child—it’s important to review and possibly update your trust with a local attorney to reflect your current wishes.

What happens to my trust when I die?

When you pass away, your revocable trust becomes irrevocable, and your successor trustee takes over. This person will follow the terms you've outlined in the trust—such as paying debts, managing taxes, and distributing assets to beneficiaries. Because the trust avoids probate in Florida, the process is typically faster and more private than settling an estate through a will alone.

Can a trust help protect my assets from nursing home costs or Medicaid?

Yes, certain types of irrevocable trusts can help protect assets from being counted for Medicaid eligibility purposes. Florida has strict rules about Medicaid planning, including a five-year look-back period, so creating a trust for this purpose requires careful legal planning.

Who should serve as trustee, and can I be my own trustee?

In Florida, you can serve as the trustee of your own revocable trust while you are alive and mentally competent. This allows you to maintain full control over your assets. However, it’s important to name a successor trustee who will step in if you become incapacitated or pass away. Choosing a reliable person or institution is key, as the trustee will have significant responsibilities, including managing trust assets, paying debts, and distributing assets to beneficiaries according to the terms of the trust.

Do I need a lawyer to set up a trust?

While you are not required to work with a lawyer to set up a trust, it is highly recommended. Establishing a trust involves several complicated legal processes. A mistake could result in the trust not being enforced or the assets not being protected. A St. Augustine trust lawyer will have the knowledge and experience to help you navigate the process and ensure that your best interests are protected.

Why Choose Our St. Augustine Trust Attorneys?

At Owenby Law, P.A., we understand that every client has unique needs and goals. When you choose to work with our firm, we will take the time to get to know you and develop an in-depth understanding of your situation. We will then help you create a solid estate plan that is tailored to your specific needs and goals.

Our St. Augustine trust lawyers are highly knowledgeable and skilled in this area of law. We will provide you with the compassionate legal guidance you need and deserve. You can rely on us to be there for you at every stage of the process, from drafting your trust to administering it to litigating any disputes that may arise.

Contact us today at (904) 674-8779 to schedule a consultation with one of our experienced trust attorneys in St. Augustine.