How Inflation Erodes Your Retirement Savings—and What to Do About It
How Inflation Erodes Your Retirement Savings—and What to Do About It Inflation is often called the “silent” threat to retirement, and the nickname is fitting. Unlike
A trust is a legal arrangement in which you (the grantor) transfer ownership of assets to a trustee, who manages them for your beneficiaries. Unlike a will — which only takes effect after death and must pass through probate — a trust can operate during your lifetime and transfer assets to your heirs without any court involvement.
Florida does not impose a state estate tax or inheritance tax. However, estates above the federal exemption threshold — $13.61 million per individual in 2024 — may still owe federal estate taxes. Proper trust planning can help couples shield up to $27.22 million from federal taxation.
The first question any estate attorney will ask is which type you need. These represent fundamentally different strategies.
A revocable living trust keeps you in control — you remain trustee and can change or revoke it at any time. Assets still count toward your taxable estate and aren’t protected from creditors, but the trust avoids Florida probate entirely and stays private, unlike a will. It’s best for probate avoidance, incapacity planning, and privacy.
An irrevocable trust requires you to give up control — changes need court or beneficiary consent. In exchange, assets are removed from your taxable estate and shielded from creditors. It also bypasses probate and remains private. It’s best for estate tax reduction, Medicaid planning, and asset protection.
Most families start with a revocable living trust as their foundation — flexible, probate-free, and useful if you become incapacitated. Irrevocable trusts are layered on for high-net-worth estates, blended families, business owners, or those with significant litigation exposure.
Florida probate can take 9–18 months and typically costs 3–7% of the gross estate. A properly funded trust bypasses this entirely, transferring assets to heirs in weeks. And unlike a will, which becomes a public court record, a trust keeps your family’s financial affairs private.
If you own property in multiple states — say, a beach condo in St. Augustine and a cabin in North Carolina — a trust also eliminates the need for ancillary probate proceedings in each state.
A trust gives you control over how and when heirs receive money. Rather than handing an 18-year-old a lump sum, you can stagger distributions at 25, 30, and 35. For children with disabilities, a Special Needs Trust preserves their eligibility for Medicaid and SSI. For blended families, a QTIP trust can provide lifetime income for a surviving spouse while ensuring the principal ultimately passes to children from a prior marriage.
Finally, a trust handles incapacity in a way a will simply can’t. A named successor trustee can immediately step in to manage your assets — paying bills, handling investments — without any court involvement.
While Florida imposes no estate tax, high-net-worth families still face federal exposure. Key tools include an AB (Bypass) Trust that effectively doubles a married couple’s exemption; an ILIT that keeps life insurance proceeds out of the taxable estate; a GRAT that transfers asset appreciation to heirs with minimal gift tax; and a Charitable Remainder Trust that generates an income stream plus a charitable deduction. Not every family needs these, but for estates approaching the federal threshold, proactive planning makes a meaningful difference.
Florida’s homestead exemption provides significant property tax benefits, but those benefits interact with trust ownership in specific ways. Placing your primary residence in a revocable trust typically preserves the exemption; transferring it to an irrevocable trust may not. Your attorney must navigate this carefully.
For families in Nocatee, Ponte Vedra, and the St. Johns corridor, Medicaid planning is also a priority. An irrevocable Medicaid Asset Protection Trust (MAPT), established at least five years before nursing home care is needed, can help preserve assets while qualifying for benefits.
For Jacksonville families, the question is rarely whether a trust makes sense. More often it’s simply — which kind, and when?
This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Laws and exemption amounts are subject to change. Please consult a qualified estate planning attorney licensed in Florida before making decisions about your estate plan. Attorney advertising.
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