Florida Living Trust vs Will: Which Saves Your Family More Money

Florida Estate Planning: Living Trust vs Will – The Money-Saving Truth

Florida families lose millions every year to unnecessary probate costs. The choice between a living trust and a will could determine whether your family keeps their inheritance or loses it to legal fees and court delays.

Florida’s Probate Reality Check

Here’s what Florida families face when an estate goes through probate:

• Summary administration: Available for estates under $75,000 or when the decedent has been dead for more than two years. This is a simplified process, but not all estates qualify.

• Formal administration: Required for larger or more complicated estates. This involves a full court process, more paperwork, and higher costs.

• Attorney fees: Florida law allows attorneys to charge a “presumptively reasonable” fee, often around 3% of the estate’s value, but actual fees can be higher depending on complexity.

• Time delays: Even simple probates can take 6–12 months or longer, especially if there are disputes or hard-to-value assets.

Caveat: Probate costs and timelines can vary based on the county, the assets involved, and whether there are any challenges to the will or estate.

Why Living Trusts Win in Florida

• No state estate tax: Florida does not impose a state estate or inheritance tax, but federal estate tax may still apply to very large estates.

• Homestead protections: Florida’s constitution provides strong protections for a primary residence, but these rules can be complicated and may affect how property passes to heirs.

• Privacy protection: Living trusts avoid public probate proceedings, keeping your family’s financial affairs private.

• Cost savings: By avoiding probate, families can save thousands in attorney fees and court costs. Trust administration is usually faster and less expensive, though there are still some costs involved.

Note: A living trust only avoids probate for assets that are actually transferred into the trust before death. Assets left out of the trust may still require probate. Trusts also require ongoing management and may have setup and maintenance costs.

The Real Numbers

For a $400,000 Florida estate:

• Will + probate: Approximately $12,000 in attorney fees, plus court costs and possible delays.

• Living trust: Around $2,500 for setup, with some additional costs for trust administration.

• Savings: $9,500 or more, plus faster and more private distribution to beneficiaries.

Actual costs can vary depending on the attorney, the complexity of the estate, and whether there are any disputes or unusual assets.

When Wills Make Sense in Florida

• Very small estates under $75,000 that qualify for summary administration

• Simple family situations with no disputes or complicated assets

• All assets have up-to-date beneficiary designations or are jointly owned, so probate is not required

The math is clear: For most Florida families, living trusts can save significant money and time, but it’s important to review your specific situation and keep your documents current.

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Disclaimer: This blog post is for general informational purposes only and does not constitute legal advice. Probate and estate planning outcomes can vary widely depending on your personal circumstances and the evidence available. Always review your options carefully before making decisions about your estate.