Legal Guidance For Trust Administration In South Florida

I founded my Miami firm, Nelson C. Keshen, P.A., to provide comprehensive estate planning and administration services for clients in South Florida. In over 40 years of dedicated legal service, I have helped countless clients create comprehensive estate plans and work through the complexities of the administration of wills and trusts. If you need to prepare or update an estate plan or assistance with a will or trust’s administration, I offer compassionate legal guidance and advice founded in experience.

Understanding Trust Administration And The Trustee’s Responsibilities

Trust administration involves managing and distributing the assets held in the trust according to the settlor’s instructions. When a settlor creates a trust, they nominate a trustee. In Florida, the trustee is responsible for the trust’s administration. If you’ve been nominated as trustee, you have certain responsibilities, including:

• Keeping accurate and detailed records: As trustee, you must maintain detailed records of all transactions, including income, expenses and distributions.
• Accountings and communication with beneficiaries: You’ll also need to prepare accountings to provide to the beneficiaries. Documentation such as the trust document, asset valuations and tax returns is essential for proper administration. Ongoing communication with the beneficiaries is important.
• Distributing assets to beneficiaries: Distributing assets to beneficiaries in Florida involves following the terms outlined in the trust document and distributing assets as directed. This typically includes notifying beneficiaries, obtaining necessary releases and transferring assets in a timely manner.

As trustee, you have a fiduciary duty to act in the best interests of the beneficiaries. This includes managing trust assets prudently, making informed investment decisions and avoiding conflicts of interest. In addition, Florida trust administration requires careful attention to detail and adherence to legal requirements. A Miami trust administration lawyer can guide you through this process in accordance with Florida laws.

Choosing The Right Trustee For Your Trust

Choosing the right trustee is an important consideration when creating a trust as part of your comprehensive estate plan. The trustee should be someone you trust implicitly, who is organized, responsible and capable of handling financial matters. Consider the following factors when making your decision:

• Integrity
• Financial acumen
• Availability
• Understanding of your wishes

If you’re considering a corporate trustee, research their experience and track record. A Miami trust lawyer can provide guidance on selecting the right trustee for your specific needs.

Frequently Asked Questions About Trusts And Trust Administration

Trusts come in many different varieties and have multiple uses and benefits, but many people are unfamiliar with them. Here are the answers to the questions I hear most often from my clients.

Does a Florida trust have to go through probate?

One of the main reasons people use trusts is to avoid the expense, exposure and delays associated with probate. When assets are properly titled in the name of a trust, then assets typically do not have to go through probate after the grantor passes away. The trust administration process is also much more private than probate (which is a matter of public record) and faster.

Unfortunately, any assets that are not officially transferred into the trust before the grantor’s death may still have to go through probate. The failure to properly fund a trust is one of the most common mistakes that I help clients avoid.

How long does the trust administration process take in Miami?

It can take about three to 18 months, depending on the complexity of the situation, to settle a trust. For simple trusts, this timeline is typically much faster than probate, however.

Several factors can affect the timing of the trust administration process, including the type of trust, the types of assets held by the trust, disputes between beneficiaries and tax issues. An experienced attorney can help you anticipate the timeline to settle your trust and administer the trust in such a way that minimizes avoidable delays.

Can a trust beneficiary claim the Florida Homestead Exemption?

The Florida Homestead Exemption is a property tax break that reduces a home’s taxable value for a primary residence, which can limit annual assessed value increases and offer creditor protection. Whether or not a trust beneficiary can claim the Florida Homestead Exemption will depend on how the trust is structured. The Florida Homestead Exemption often offers protection when a property is held in a revocable trust and when the beneficiary has the right to live in the home as their permanent resident.

However, Florida homestead laws can affect creditor protection, forced sale restrictions and inheritance regardless of whether a property is in a trust. Simple mistakes can lead to serious legal issues. It is important to speak to a lawyer before seeking the Florida Homestead Exemption.

Consult A Miami Trust Lawyer

As an experienced Miami trust administration lawyer, I am available by appointment for consultations. To schedule an appointment, you can call me at 305-517-3577 or send me a message through my website.