CURRENTS Next Issue Mar 2018 _Currents copy | Page 15

Currents March 2018 15
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Revocable Living Trust is very useful to avoid probate in both states . If you are a Florida resident , you can own your homestead property via a Revocable Living Trust without losing your homestead exemption . In addition , you are eliminating the need for probate when you pass away . You can also transfer real estate owned in any other state to your Florida Trust . Generally , a Florida lawyer will prepare the Revocable Living Trust and Quit Claim Deed to transfer the Florida property into the Trust . If you are a Florida resident , the lawyer will also prepare a new Florida Last Will and Testament called a Pourover Will . This provides for the transfer to your Trust upon your death of any other assets not in the Trust or which do not have beneficiaries already designated . It is a security blanket to cover any assets payable to your Estate . For example , if you were to be killed in a car accident due to the negligence of another driver , your Personal Representative would be able to settle your Estate ’ s claim and “ pourover ” the proceeds into your Trust .
If you are not a Florida resident , you can still create a Florida Revocable Living Trust and execute a Quit Claim Deed to put your Florida property into the Trust . Your Last Will and Testament will be done by a lawyer in the state in which you have your legal residence . In addition , that lawyer can prepare a Deed to transfer the out of state property into the Florida Trust .
For Canadian citizens , there are possible tax aspects to be considered before you create a Florida Trust . These should be discussed with your Canadian accountant or tax attorney . In general , you will have to weigh the tax consequences versus the money and time that your heirs would save by avoiding probate in Florida .
Another favorable factor in creating a Revocable Living Trust is that you can always amend the Trust without having to change the Deed . In addition , once you create the Trust , you can always buy new properties in any state in the name of the Trust .
The Revocable Living Trust is recommended by most lawyers over a Deed which includes names of other persons , either as joint tenants , tenants in common or a Life Estate Deed . Once another person ’ s name is on a Deed , there are potential risks to
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