Irrevocable Trust Attorney in Ormond Beach & Palm Coast, FL

Preserve Your Legacy and Protect Your Assets with a Florida Irrevocable Trust

Irrevocable trusts are powerful estate planning tools. They might shield assets from creditors and help you qualify for Medicaid long-term care benefits. Establishing an irrevocable trust requires careful planning and a thorough understanding of Florida law. Generally, it cannot be changed once it is created. However, you can change certain important elements of an irrevocable trust, such as the trustee and who gets how much after you die. If you want to protect your wealth and provide for your loved ones in Daytona Beach, Ormond Beach, or Palm Coast, our experienced estate planning attorney can help you create a legally sound trust that reflects your goals and safeguards your assets.

What Is an Irrevocable Trust?

An irrevocable trust is a legal arrangement in which the grantor (person creating the trust), who is also known as a trustmaker or settlor, transfers ownership of assets to the trust. A trustee named by the grantor then holds and manages those assets in a fiduciary capacity. They are responsible for using the assets solely to benefit those named as beneficiaries and according to the terms of the trust.

Once an irrevocable trust is established and funded, the grantor cannot modify or revoke it, except for the trustees and death beneficiaries, without the consent of the beneficiaries and the trustee in some cases. The primary purposes of this type of trust are to remove assets from the grantor’s estate to protect them from lawsuits and creditors, and ensure they are not counted toward Medicaid eligibility.

What Are Some Common Types of Irrevocable Trusts?

Several types of irrevocable trusts are available in Florida, each designed for a specific purpose, such as protecting assets, minimizing taxes, or supporting loved ones with special needs. The right type of trust for you will depend on your financial goals, family situation, and long-term care planning needs. The following are among the most commonly used irrevocable trusts in estate planning in Ormond Beach and Palm Coast:

Medicaid Asset Protection Trust (MAPT)

This type of trust is designed to help individuals become eligible for Medicaid long-term benefits while preserving assets for their heirs. When you transfer assets into a Medicaid Asset Protection Trust (MAPT) at least five years before applying for Medicaid, typically, those assets are not counted for eligibility purposes. A MAPT can hold real estate, investments, and savings. It protects your wealth from being spent down on nursing home costs and allows you to leave a legacy.

Special Needs Trust

If you have a loved one with a disability, a special needs trust allows you to provide financial support without disqualifying the disabled person from essential government benefits, such as Medicaid and Supplemental Security Income (SSI). The special needs trust can cover expenses that enhance your loved one’s quality of life, such as personal care, travel, education, and medical treatments not covered by insurance, while preserving eligibility for public assistance. A special needs trust is a critical planning tool for families with children or adults dependent on government aid.

Spendthrift Trust

A spendthrift trust allows the trustee to control how and when distributions are made to protect a beneficiary’s inheritance from creditors, legal judgments, or poor financial decisions. This type of trust can prevent the beneficiary from accessing large sums at once. This type of trust can be an effective tool when a beneficiary has a history of debt, addiction, or other issues that could jeopardize their financial security. It can also serve as a long-term wealth management strategy for younger beneficiaries and blended families.

Who Needs an Irrevocable Trust?

Irrevocable trusts are not only for the ultra-wealthy. Our skilled estate planning lawyer can assess your goals and finances and help you determine whether it is the right fit for you. An irrevocable trust could become an essential part of your estate plan in any of the following circumstances:

You want to protect assets from future lawsuits or creditors.
You want to leave a legacy to a child with special needs.
You are concerned about the rising costs of nursing home care.

How Does Florida Law Govern Irrevocable Trusts?

The Uniform Trust Code (UTC) has been widely adopted across the U.S., including Florida. Most of Florida’s trust code provisions are based directly on the UTC. It sets a framework for the state’s trust creation, administration, and enforcement. Working with an experienced estate planning attorney can be vital to helping you establish irrevocable trusts. Key legal principles include the following:

Trusts must be in writing: Florida requires that all trusts, revocable or irrevocable, be in writing and signed by the grantor.
Trustee responsibilities: The trustee has a duty to follow the terms of the trust, act in the best interests of the beneficiaries, and manage the assets prudently under Florida’s fiduciary standards.
Irrevocability and immutability: An irrevocable trust cannot be revoked or modified unless trust rules are followed, all beneficiaries consent, or the court approves a change in limited circumstances, as when the original purpose of the trust is no longer possible.
Homestead exemption limitations: Although Florida has strong homestead protections, they do not automatically extend to irrevocable trusts. If your home is placed in trust, it must meet certain criteria to maintain exemption from creditors and taxes.

FAQs About Irrevocable Trusts in Florida

Can I Serve As the Trustee of My Own Irrevocable Trust?

Generally, no. But there are exceptions. For example, you can serve as your own trustee when asset protection planning for Medicaid planning benefits.

Can I Remove Assets From the Trust at a Later Time?

Yes, but only if you follow the rules of the trust. Most irrevocable trusts do not allow the trustee to distribute assets directly to you. But they may distribute assets to someone else of your choosing. That person can then give the money to you if they so choose. If they don’t, you can change your irrevocable trust to leave them nothing. So, although you may not directly remove assets in most cases, you can indirectly remove them.

Can I Change the Trustee of an Irrevocable Trust?

You can change the trustee if the trust document allows it, or with court approval. Many irrevocable trusts include provisions for removing or replacing a trustee if necessary.

Can I Receive Income From an Irrevocable Trust?

Although you no longer own the assets, you can receive income from an irrevocable trust in certain cases, depending on how the trust is structured.

Do I Need an Attorney to Create an Irrevocable Trust?

Irrevocable trusts are complex instruments. You need an experienced Florida estate planning attorney to ensure the trust is drafted correctly, legally valid, and aligned with your goals. Call Selis Law Firm at 386-210-0058.