Orlando Trust Lawyer

Helping Clients Protect Their Assets

A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. A trust is a legal creation of a fiduciary relationship where one person wants to set up a fund with assets to give to others.

A trust is a financial product created by a grantor who wants to give assets to another person, but it is fiscally managed by a trustee. The trustee has a legal responsibility to do what the owner of the trust asks. Beneficiaries are the recipients of the assets that are held in a trust for them.

A trust is an important part of a successful estate plan, and its purpose is to hold assets for beneficiaries.

Orlando, Florida, attorney L. Reed Bloodworth is managing partner of Bloodworth Law PLLC with offices in Orlando and Winter Haven.

Bloodworth Law is a 2020 and 2021 U.S. News and World Report Best Law Firm. Reed is a 2021 U.S. News and World Report Best Lawyer in Trusts & Estates Litigation and handles estate planning, including the establishment of trusts for clients in most Florida cities, counties, and courts.

What is a Trust?

“What is a trust? Like a will, a trust is a legal creation and an important part of a successful estate plan,” said Florida attorney L. Reed Bloodworth, Founder and CEO of Bloodworth Law. “Its purpose is to hold assets for beneficiaries.

“Trusts are traditionally used to minimize estate taxes and avoid probate court, among other benefits as part of a well-crafted estate plan.”

There Are Many Types of Trusts

“There are many types of trusts, including revocable trusts, irrevocable trusts, and living trusts,” said Reed, who is located in Orlando, Florida, with offices in Winter Haven, Florida.

“A trust is a fiduciary arrangement that allows the trustee to hold assets on behalf of the beneficiary or beneficiaries.

“Trusts can be arranged in many ways and can specify exactly how and when the assets pass to beneficiaries. The type of trust defines who controls it and how and when trust funds may be accessed and used.”

What is a Revocable Trust?

In a revocable trust, the grantor controls the trust and controls those assets for his or her lifetime. It is revocable — it may be changed during the life of the trustor.

What is an Irrevocable Trust?

In an irrevocable trust, the grantor puts items into the trust but relinquishes control of those assets. A trustee manages the assets for the duration of the trust.

Why Are Trusts Beneficial?

Trusts are very beneficial in terms of estate planning. A trust is another method of estate transfer—a fiduciary relationship in which you give another party authority to handle your assets for the benefit of a third party, your beneficiaries.

The Bloodworth Law Estate Planning Team handles probate, guardianship and estate planning services for clients across Florida in the city and courts where you live.

When you have questions about trusts or estate planning, talk to an experienced trust or estate litigation attorney to help you or your family.

What are the Differences in Florida Trusts?

What are the differences in Florida trusts? Here’s a brief overview:

• The Revocable Living Trust or Inter Vivos Trust. These trusts are often established to avoid the probate process and make sure that assets go to the trust grantor’s (creator) intended recipients without a lengthy court process after the grantor’s death.
• Grantor Trust. A Grantor Trust is created by the individual who has initiated the trust in order to transfer property to another person or business entity for purposes of avoiding probate, taxes, or other complications stemming from the disposal of assets.
• Irrevocable Living Trusts are contracts created to transfer or manage assets of an individual that the trust creator claims is not competent to manage property or other assets.
• Testamentary Trust. A testamentary trust is created through explicit instructions in the will of a deceased individual.
• Minor’s Trust passes assets to a child and provides for management of those assets until the child reaches a certain age when the trust creator specifies they assume full control of the assets.
• Beneficiary’s Trust, or Separate Share Trust, or Spendthrift Trust. These trusts allow trustees to manage the assets in a trust for the welfare of the recipient of the trust.
• Blind Trust. A blind trust allows the trustees or anyone holding power of attorney to handle the assets of the trust without the knowledge of the beneficiaries.
• Discretionary Trust. In a discretionary trust, the beneficiaries and assets are not fixed but determined by criteria established in a trust instrument and administered at the discretion of the trustees.

What is a Living Trust?

A living trust is a legal document into which assets and property can be placed. It establishes a trust for any assets you want to transfer into it. You have complete control of all assets in your trust, and may manage the assets any way you want.

A living trust is revocable, and you retain the legal right to make any changes to it whenever you want as long as you are competent.

A primary reason for establishing a living trust is to oversee the transfer of your assets after your death. A living trust is effective immediately upon signing and funding it.

Florida attorney Reed Bloodworth, Founder and CEO of Bloodworth Law, explains that one of the most common estate planning trust instruments that an attorney prepares is a living trust.

A Living Trust Holds Assets and Property

The living trust is established by a document and is placed into the ownership of a trustee.

The trustee takes control of the assets in the trust and is responsible for distributing them to beneficiaries as the trust directs.

You can be the trustee, or you can name someone else as the trustee.

There are usually at least three parties to the trust instrument: a settlor or grantor, the trustee, and the beneficiary. The settlor or grantor is the person who forms the trust and funds the trust with the property.

Trustee: You, Your Spouse, Financial Firm, Relative

The trustee holds a fiduciary duty to administer the trust property for the beneficiaries in accordance with the trust’s terms. The trustee may be you, your spouse, a close relative, a bank, or a trust company.

The beneficiaries are those designated in the living trust that will receive a benefit from the trust. A living trust can be a powerful tool for passing the benefit of your estate to loved ones on whatever terms you decide.

A Living Trust Offers Protection

This “living” protection is one of the most valuable aspects of a living trust.

With increasing longevity, we are at greater risk of experiencing a disability that renders us unable to manage our personal and business affairs.

Living Revocable Trust

A properly drafted living revocable trust provides assurance that should disability occur, your affairs will be managed by whom you want, how you want. This also reduces the possibility of court-appointed guardianship, a public and costly process.

The right time to create a living trust is when you’re ready to plan for yourself and your family. Bloodworth Law provides Florida estate planning legal services and the creation of legal documents to protect you, your family, your assets, and your future.

What Happens in a Trust Dispute?

Whether you’re a grantor who was affected by fraud, or a trustee accused of forging signatures, you have a couple of options when it comes to a trust dispute.

First, You Can Settle Out of Court

You can settle out of court if both parties can come to an agreement on the disputed issue. But trustees or beneficiaries can reject the agreement and instead take the matter to court.

Second, You Can File a Lawsuit

If the matter must be decided in court, a lawsuit can be filed in Florida’s Circuit or Probate court. There, attorneys provide the evidence and documents required for the court or jury to decide the issue.

What Actions Can a Plaintiff Pursue in Trust Litigation?

Within trust litigation, a plaintiff can pursue many different types of remedies. A few of these include:

• Having a trust declared void
• A trust, or amendment thereto, can be declared void if it is proven that the trust was obtained by fraud, duress, mistake, or undue influence
• Trust Reformation
• The trust can be reformed to reflect the original intent of the person writing the trust or to clear up anything that was not clearly stated in the trust
• A trustee can be removed

If necessary, action can be taken against the trustee to remove them for breaching fiduciary duties.

What’s a Trust Dispute?

So, what’s a trust dispute? The term “trust dispute” is used as a catch-all for a great number of issues that arise regarding a trust that typically result in litigation. These include:

• A sudden, unexpected change to a trust
• A beneficiary left out of the trust
• Siblings or spouses accused of forcing changes to a trust
• Accusations of accounting mismanagement by the trustee
• Whether a grantor, the person placing assets into the trust, was of sound mind, and had the legal capacity to create a trust
• Whether a grantor was coerced into creating a trust, which is called “undue influence” or “duress”

Bloodworth Law Handles Trust and Probate Litigation

Bloodworth Law, PLLC, handles trust and probate litigation for plaintiffs and defendants. We work with clients across Florida for trust and probate litigation cases.

Talk with Reed about why you want to dispute a trust, or if you believe a trustee, family member, friend, or beneficiary has changed or handled a trust improperly.

We won’t take any case we don’t believe in, so let’s talk about what happened and discuss how Bloodworth Law can help you or your family.

What Are Trust Accounting Actions?

The legal process of hiring a lawyer to get the trustee to provide information is known as an accounting action. A trust accounting action is the legal request from a lawyer through the courts asking for answers about a trust.

When it comes to a trust’s financial information, the type of action taken depends upon what you want to know and how deeply you want to review a trust or pursue legal action against a trustee.

Why Would You Worry About a Trust?

So, what are some common reasons for pursuing a trust accounting action?

Beneficiaries may feel that a trustee has:

• Stolen trust funds or assets
• Commingled funds
• Failed to keep proper records
• Abused their power in a way that affects the beneficiaries

As a beneficiary in these cases, you may need an attorney to assist you:

• In getting in-depth accounting and reporting
• Appearing in court to compel an accounting action, or
• Contest or object to the accounting

For example, you may only want to see the trusts’ bank statements. However, these are often provided to you in an informal accounting. This request may be a non-court-ordered accounting action.

Beneficiaries Have Rights

But if you are a beneficiary and you have not received an annual trust accounting, you have the right to demand a trust accounting from a trustee.

Formal Accounting

A formal accounting is a process required by Florida law and usually by the trust instrument itself. A formal trust accounting is required to include the following things:

• A statement identifying the trust;
• The name of the trustee providing the accounting;
• The time period covered by the accounting;
• It must show all the cash and property transactions;
• It must show the fees paid to the trustee and persons hired by the trustee;
• It must show the gains and losses realized during the accounting period;
• The accounting should identify and value each trust asset; and
• An accounting may require other items depending upon the size or type of the trust.
• When there are obstacles involved in a formal accounting, you’ll need a trust litigation attorney to take legal action to obtain formal accounting and information.

Follow Your Gut

Even when you feel there’s a small dispute between a beneficiary and a trustee, follow your gut. If you think something is wrong, it’s important to hire a trust litigation attorney to determine the depth of issues involved.

Should You Establish a Trust?

Should you establish a trust? Trusts are a great tool; for example, if you have a child or grandchild that you want to leave a gift to but do not want to give it all to them at once. A trust allows the grantor to make the gifts in increments.

Trusts can be simple or complicated, it all depends on what your goals are.

Revocable Trusts are Flexible

Revocable trusts are flexible and tailored to each individual’s needs and goals. If a beneficiary has an addiction problem, the trust can address the distributions and place restrictions on them.

While a Revocable Trust is more expensive to prepare than a basic Last Will and Testament, the process of Probate is usually more expensive than drafting a trust.

Is the Trust Properly Funded?

Is the trust properly funded? If the trust is fully and properly funded, the expense of probate can be avoided, thereby leaving more assets for your loved ones.

If the Trust is NOT Properly Funded

If the trust is not funded, underfunded, or funded incorrectly, the trust will not avoid probate. A trust also protects your privacy.

A Trust is Private

A last will and testament needs to be filed with the Clerk of the Court and becomes public record, while a trust does not.

To make sure the trust is fully funded, the grantor must fund the trust by updating beneficiaries and retitling assets such as bank accounts or real estate.

Even if the trust is fully and properly funded, sometimes a probate proceeding is initiated to run the creditor period.

Revocable Trusts

Revocable trusts do not protect from creditors; as long as you are living, you have the ability to change the terms of the trust. You can add to, delete from, or terminate the trust. But, essentially, you still personally own the assets of the trust.

Trusts Don’t Go Through Probate

A trust does not go through probate, but a notice of trust must be filed, and if there is a creditor, creditors typically have up to two years to file a claim. If a probate proceeding is started, the creditor period is much shorter, usually three to four months.

Establishing a trust is a personal financial decision that may not be right for everyone. Talk with Reed about how the Bloodworth Law Estate Planning Team can help you, your family, or your business.