What Is a Revocable Living Trust? How It Works in Florida
The short answer
A revocable living trust is a legal document that holds your home, accounts and other assets while you are alive. You can change or cancel it at any time. In Florida, a funded trust keeps those assets out of probate, names who steps in if you cannot manage, and can protect a child with a disability.
If you are raising a child with a disability, or your adult son or daughter depends on SSI and Medicaid, the big question is not only who inherits. It is who will manage the money, and how, so benefits stay in place. For many Florida families, a revocable living trust is the center of that estate plan.
How does a revocable living trust work in Florida?
Three roles, usually one person at first
Every trust has a settlor (the person who creates it), a trustee (who manages it) and beneficiaries (who benefit from it). While you are alive and well, you usually fill all three roles. You buy, sell and spend exactly as before, and your income taxes do not change.
Florida's signing rule
Florida treats the parts of a trust that pass property at death like a will. Under section 736.0403(2)(b) of the Florida Statutes, those provisions are invalid unless you sign the trust with the same formalities as a will, which means two witnesses. A trust signed without witnesses, such as some online forms or a document signed in another state, may not hold up here.
Changing or canceling it
Under section 736.0602, a Florida trust is revocable unless it says otherwise. You can amend it as your family changes: a new grandchild, a divorce, a child's diagnosis or a change in who you trust to serve as trustee.
What happens if you become incapacitated or pass away?
If you can no longer manage your affairs, the successor trustee you chose takes over the trust assets without a court-supervised guardianship of property. Bills get paid and your child's care continues.
At your death, the trust becomes irrevocable. The successor trustee files a Notice of Trust with the court in the county where you lived (section 736.05055), pays final bills and expenses, and then follows your instructions for each beneficiary. Anything left outside the trust is caught by a pour-over will, but those assets usually go through probate first. That is why funding the trust, meaning retitling your home and accounts into it, matters as much as signing it.
Why does a revocable trust matter when your child has a disability?
A basic trust that splits everything equally among your children can undo years of careful work. If your child receives SSI, an outright inheritance counts against the $2,000 resource limit and can end both SSI and Medicaid. The fix is to have your child's share stay in trust as a third-party special needs trust. The Social Security Administration explains in POMS SI 01120.200 that a trust funded with someone else's money, which the beneficiary cannot revoke or use for support, is not the beneficiary's resource.
Sub-trust or standalone special needs trust?
The special needs share can be written inside your revocable trust as a sub-trust, or set up as a separate third-party special needs trust. A standalone trust is often the better choice when grandparents, aunts or uncles want to leave gifts, or when you want life insurance and retirement accounts to name it as beneficiary.
What does a revocable living trust not do in Florida?
It does not protect your assets from your own creditors while you are alive (section 736.0505).
It does not shelter your own savings from Medicaid if you later need long-term care.
It does not reduce estate taxes by itself.
It does not override Florida's homestead rules. If you leave a spouse or minor child, limits on who can inherit the home still apply.
It does not control assets that pass by beneficiary designation, such as a 401(k), IRA or life insurance policy.
For some families, the home is handled with a deed instead. See lady bird deed or living trust for how those options compare.
Frequently Asked Questions
Is a living trust the same as a revocable trust?
Usually, yes. "Living trust" means a trust created during your lifetime, and most living trusts are revocable, so the terms are often used together. An irrevocable trust can also be created during life, but it generally cannot be changed without the consent of the beneficiaries or a court.
What is the difference between a revocable and irrevocable trust?
A revocable trust can be changed or canceled by the person who made it, and its assets are still treated as that person's own. An irrevocable trust generally cannot be changed. A third-party special needs trust becomes irrevocable when it holds a child's inheritance, which is what keeps it from counting against SSI and Medicaid.
Does a revocable trust avoid probate in Florida?
Only for assets that are actually titled in the trust's name or that name the trust as beneficiary. Assets left in your individual name usually pass through your pour-over will and require probate.
Can I put my Florida home in a revocable living trust?
Yes. Many Florida families deed their home to their revocable trust. With the right trust and deed language, you can generally keep the homestead property tax exemption. Florida's limits on leaving a homestead when you have a spouse or minor child still apply, so the deed and trust should be drafted together.
Who pays taxes on a revocable living trust?
While you are alive, you do. The trust is generally ignored for income tax purposes and uses your Social Security number, so income is reported on your own return. After your death the trust becomes a separate taxpayer, and the trustee files its returns.
Should my child with a disability inherit directly from my trust?
Usually not if your child receives or may need SSI or Medicaid. A direct share can count as income and then as a resource. Directing the share into a third-party special needs trust lets the trustee pay for quality-of-life needs while benefits continue.
Can a revocable trust be changed after the person who made it dies?
Generally no. At death the trust becomes irrevocable and the successor trustee must follow its terms. Florida law allows limited changes through court modification or agreement in some cases, which is why reviewing the trust every few years while you can still amend it is important.
How Legacy Solutions Law Firm helps Florida families plan with a revocable trust
Legacy Solutions Law Firm designs revocable living trusts for Florida individuals, couples and families at every stage, from parents of young children to retirees and grandparents. When a child, grandchild or other loved one has a disability, the special needs trust and beneficiary designations are built into the same plan. The first step is a Discovery Call with the firm's intake team to talk about your family and goals. If a plan review is the right next step, the team will set that up.
Looking for other terms? See the full special needs planning glossary.
Prepared by Legacy Solutions Law Firm, PLLC, Hollywood, Florida. Reviewed by Randy Narkir, Esq., special needs planning attorney.
The information provided here is for general educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship. For guidance specific to your situation, consult a qualified Florida attorney.
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