Ensure Your Assets Are Properly Titled to Avoid Probate
Creating a revocable living trust is a smart move for many Florida residents—but it’s only effective if you actually place assets into it. The process of moving property into the trust is called funding the trust, and one of the most important assets to include is real estate. If property isn’t properly transferred, it may still go through probate, defeating one of the main purposes of the trust.
Why Transferring Property Matters
Once your trust is established, it’s essentially an empty container until you fund it. Titling your property in the name of your trust ensures that the trust controls the asset during your life and after your death—allowing your successor trustee to manage or distribute the property without court involvement. Failure to transfer the deed can result in unintended probate, delays, or even disputes among beneficiaries.
Steps to Transfer Real Estate into a Trust
Here’s a general overview of how to properly move Florida real estate into your trust:
- Work with your attorney to prepare a new deed (typically a warranty or quitclaim deed)
- Name the trust as the new owner (e.g., “John Smith, as Trustee of the John Smith Revocable Living Trust dated MM/DD/YYYY”)
- Sign the deed in front of a notary and two witnesses, as required by Florida law
- Record the deed with the county clerk in the county where the property is located
- Notify your homeowner’s insurance provider to update the policy accordingly
For homestead property, special care must be taken to preserve Florida’s homestead exemptions and creditor protections. Your estate planning attorney should help ensure compliance with these rules.
What Other Assets Should Be Funded?
In addition to real estate, consider transferring these assets into your trust or updating their titling and beneficiary designations to coordinate with your estate plan:
- Bank and brokerage accounts
- Non-retirement investment accounts
- Business interests
- Vehicles (depending on value and usage)
Note: IRAs, 401(k)s, and life insurance policies generally should not be retitled to the trust but may name the trust as a beneficiary depending on your goals.
Don’t Let an Unfunded Trust Undermine Your Plan
At Yelen Yelen & Simon, P.A., we help clients across Florida create and fund trusts that work. If you’re unsure whether your trust has been properly funded—or want help transferring real estate into it—we’re here to guide you through the process. Call (305) 445-3721 or visit https://www.yelen-yelen.com/contact/ to schedule a consultation today.