One of the many advantages of establishing a living (revocable) trust in Florida is the privacy it affords you and your family. Unlike a will, which must go through probate and becomes public record, a trust is confidential. Your family and financial information are protected from prying eyes, be they potential heirs, nosy neighbors, companies that want to sell properties in probate, etc.
That said, there are occasions during the lifetime of the trustor (i.e., the trust-maker, also known as the grantor), as well as after the trustor dies and the successor trustee takes over, that a limited amount of trust information may have to be furnished to others. However, the details of your trust still remain private. We explain below.
Funding Your Living Trust or Refinancing
To be effective, your living trust must be funded. Funding means retitling the assets in the name of your trust. For example, a bank account owned by “Mary Jones” would be re-named and owned by “Mary Jones, Trustee of the Mary Jones Revocable Trust.”
Some assets, such as a 401k, generally should not be transferred into a trust. Your attorney will advise you about funding, letting you know which assets should/should not be retitled. (Alternatively, some clients name the trust as the beneficiary of an account, but then the benefit of the trust is only available upon the trustor’s death, not during his/her lifetime.)
Here is where the privacy issue comes in: Banks, brokerages and title companies will ask to see your trust in order to change the ownership and retitle an account. However, be aware that financial institutions do not have the legal right to see your entire trust. Instead, they can be furnished with just select pages of your trust, and the signature page. These pages will show:
- Who created the trust
- Whether the trust is revocable or irrevocable
- Who the trustees are
- Who the successor trustees are
- The signature page
From time to time our clients tell us that their financial institution is insisting on seeing their entire trust. This generally happens when the the individual they are dealing with at the financial institution does not understand the rules. A phone call can sort out the problem.
Notice of Trust: When the Trust Creator Passes On
Florida law requires that when the trustor dies, the successor trustee must file a Notice of Trust. This is to let interested parties and potential creditors know about the death. The notice is filed with the court in the county in which the decedent was domiciled.
The Notice of Trust also protects your privacy because it contains only limited information: the name of the deceased trustor and date of death; the name and address of the trustee; the type of trust; and the date the trust was executed.
Only if there is a probate proceeding ongoing or one is opened, will the Notice of Trust get filed in the probate proceeding.
Read the Florida statue pertaining to the Notice of Trust here.
Providing Information to Beneficiaries When The Trustor Passes On
Your trust beneficiaries are entitled to receive information about your living trust once you pass on. Your successor trustee must provide them with basic information about the trust:
- Who is in charge
- The rules for the trust
- Information about what the beneficiary will inherit under the trust
Read the rules relating to what successor trustees must communicate to beneficiaries here.
Sometimes a beneficiary will ask to see the entire trust. The successor trustee must honor the request. Then, of course, the beneficiary can share the information with anyone he/she wishes.
Learn more about Florida living trusts and their benefits here. Whether you are creating a revocable trust or you are the successor trustee administering one, The Karp Law Firm can assist you. Contact our office for a consultation at (561) 625-1100.
