Revocable Inter Vivos Grantor Trusts

Some people are saying that you can set up your own trust instead of using a lawyer, but I disagree. A really smart estate planning expert, Rohan Kelley, has said it’s okay for simple estates, but I think it’s still risky. Trusts and wills are two different things, and using a do-it-yourself trustee instead of a professional trustee is a big difference. Trust officers are constantly studying to keep up with the complicated financial and tax world, while self-declared trustees often try to avoid dealing with an attorney. However, Florida law applies the same rules to both traditional trusts and do-it-yourself estate plans, which can cause problems for both. Two statutes in Florida are causing issues for traditional trusts, but a new law is being passed to correct some of these problems. The dangers of using a do-it-yourself trust/estate plan can be summarized as follows:

1) There are procedural gaps in trust litigation, and it may be difficult to establish the validity of a trust or deal with lost trust documents.
2) There is no provision for the priority of expenses and claims in trust administration, leading to potential conflicts and complications.
3) The trust administration code does not provide the same level of statutory help as the probate code, making it difficult for trustees to navigate legal issues.

In short, using a do-it-yourself trust could lead to significant legal challenges and complications in handling the administration of assets and expenses. The legal code around trust administration has some tricky and potentially problematic areas. For example, it’s important to prioritize expenses in a ward’s estate, and some attempts to expand the restrictions around homestead property in trusts could cause confusion. There’s also a section about allocating distributions that is potentially dangerous if not used properly. It’s important to be careful and understand the potential implications when dealing with trust administration. In simple terms, using a do-it-yourself revocable trust can create a lot of problems and complications. There are other ways to avoid probate, like life insurance and joint accounts, that are much easier to understand and predict. It’s best to avoid the potential issues that come with a revocable trust. After a law was repealed, there was confusion about whether property should be included in a trust or not. There are different rules about how assets should be distributed in different situations, and some court cases have added to the confusion. It’s important to be cautious and seek legal advice to make sure assets are distributed correctly.

Source: https://www.floridabar.org/the-florida-bar-journal/revocable-inter-vivos-grantor-trusts/