7 Common Florida Trust Mistakes (and How to Avoid Them)
Trusts can be a powerful way to protect your assets, provide for loved ones, and avoid probate. But in Florida, even small missteps can cause significant probate issues later on. I often meet people who thought they had everything covered, only to discover gaps that end up costing their family time, money, and unnecessary stress.
Here are some of the most common mistakes I see when it comes to Florida trusts and how you can avoid them.
Mistake #1. Choosing the Wrong Type of Trust
There isn’t a one-size-fits-all trust. In Florida, the two most common options are revocable and irrevocable trusts, and understanding the difference is essential.
Revocable trusts let you maintain control and flexibility during your lifetime.
Irrevocable trusts are more restrictive but can offer stronger protection from creditors or certain taxes.
The best choice depends on your specific goals. Before deciding, I always encourage clients to talk through what matters most to them whether that’s control, privacy, tax benefits, or long-term protection.
Mistake #2. Forgetting to Fund the Trust
Creating a trust is only the first step. You also need to transfer your assets into it for it to work. A well-drafted but unfunded trust is like a safe with nothing inside it. The paperwork exists, but it doesn’t protect what it should.
If your home, bank accounts, or investments remain in your personal name, the trust won’t be able to manage or distribute them as intended. This can result in your family spending even more time going through probate court, the very thing most people are trying to avoid.
Mistake #3. Not Updating the Trust Over Time
Life changes, and your trust should too. Marriages, divorces, births, new property, or the passing of loved ones all affect your estate plan.
Florida also updates its trust laws periodically. I recommend reviewing your trust every few years or after any major life event to make sure it still reflects your wishes and follows current law. It’s much easier to keep things current than to fix problems later.
Read More > How to Update Your Will & Trusts
Mistake #4. Naming the Wrong Trustee (or Forgetting a Backup)
Your trustee plays an important role; they’re the person responsible for carrying out your wishes. Choosing someone who isn’t organized, trustworthy, or comfortable with financial decisions can cause major issues down the road.
Select someone dependable and clear-headed, and always name a backup trustee in case your first choice can’t serve. For more complex estates, a corporate trustee or professional fiduciary may be a better option to ensure things run smoothly and impartially.
Mistake #5. Overlooking Florida’s Unique Requirements
Florida has its own set of laws around homestead property, spousal rights, and taxes that can affect how your trust operates.
If you’ve recently moved here or are using an online form from another state, your trust may not comply with Florida’s requirements. This can lead to delays, disputes, or even invalidate parts of your plan. Working with an estate attorney who understands Florida-specific law ensures your trust does exactly what you intend.
Mistake #6. Ignoring Digital Assets
More of our lives are online than ever before. Things like digital bank accounts, cryptocurrency, social media, and cloud storage should all be considered part of your estate.
If your plan doesn’t include instructions for digital assets, your loved ones may not be able to access them. I recommend making a list of your online accounts and logins and assigning them to someone you trust. It’s a small step that can save your family a lot of frustration later.
Mistake #7. Treating a Trust Like a DIY Project
It can be tempting to use a template or an online service, but trust planning is too important to leave it to chance.
I know this process can feel overwhelming, but you don’t have to figure it out alone. I work with families every day to create trusts that are clear, legally sound, and customized to their needs. The right plan brings real peace of mind.
Let’s Create a Trust That Works for You
If you’re ready to create a new trust or if you already have one and want to make sure it’s still protecting you, I’d be happy to help.
Schedule a consultation with me, Elaine McGinnis, P.A., and let’s make sure your plan works exactly as you intend it to.