Death is inexorable and meant to occur today or tomorrow. It is advisable to take certain steps to protect your assets before any uncertainty arrives. Florida Revocable Trust is designed to help you face the unexpected.
What is a Revocable Living Trust?
A Revocable Living Trust is a legal entity that allows an individual to place their assets under the management of a trustee. The trust property may be managed by the individual or someone of their choice. In other words, the trustee is someone named by the creator of the trust or by the creator of the trust. note that the trustee has a fiduciary duty to protect the trust creator’s assets. Also, the trust can have multiple named beneficiaries. These are the people whom the trust creator gives access to its assets.
Now that we understand what Revocable Living Trusts are, let’s explore the two different types.
When you open a Florida Revocable Trust, you can decide if you want it to be revocable or irrevocable. A revocable living trust lets you maintain full control and cancel the trust whenever you want. On the other hand, the irrevocable living trust prevents you from canceling it.
Bare ownership is the right by which a home is acquired and transferred to a third party until the agreement ends. It is an option that makes it easier for the Revocable Living Trusts to have an everyday financial situation and, at the same time, to continue enjoying the home. But there is a question about this type of agreement, how long does it last? The answer is very simple: it is possible that it is agreed for a certain period or lasts until the nominee’s death.
In other words: you can sell your house and continue to live in it for the rest of your life. But of course, other questions can be raised, such as: Can the beneficiaries continue to enjoy the living trust? Can the enjoyment of bare ownership be inherited?
What happens if the owner dies
According to the Civil Code, the right can be constituted for a certain time up to a maximum of 30 years, or for life, that is, until the possessor’s death. There are, therefore, two modalities depending on the agreement reached between the two parties.
Determined time: if it is constituted for a determined period and they die before the end of the contract, the heirs can continue to enjoy the home, as long as the title or initial contract allows it.
Lifetime: If the living trust is for life, it expires once the owner or owners of the same die. There is no possibility that his heirs will enjoy it. And, if taken for granted, there is a probate cost to pay.
Follow-up of major obligations
The obligations are focused on maintaining adequate conservation of the property and everything that has to do with maintaining and facilitating the home for the person who lives in it.
Among these obligations are ordinary and conservation repairs, as long as they do not bother the tenant. The bare owner is obliged to transfer the trust from the beginning of the agreement, so the home’s former owner will continue if he so wishes, residing in it until the agreement is terminated.
It is important to consider that, despite the specific agreements contemplated by the parties involved, the aspect related to what happens if an owner dies has a clear expression in the law. Therefore, it is not valid to contemplate another scenario other than the one indicated.
For more details, contact our Family Trust in Florida.
