If you are contemplating the addition of a trust into your estate plan for the first time, you likely have many questions. You will also need to make many decisions if you do decide to add a trust to your estate plan. One concern people often have is whether they lose control over trust assets once the assets are transferred into a trust. To help clarify the issue, the Vero Beach attorneys at Kulas Crawford & Smith explain whether you can still access assets after they have been transferred into a trust in Florida.
Fundamental of a Trust Agreement
The basic premise of any trust agreement is that the creator of the trust (referred to as the Settlor, Trustor, or Grantor) appoints a Trustee whose job is to protect and manage trust assets for the benefit of the beneficiary or beneficiaries of the trust named by the Settlor. A trust is created using a legal document called a trust agreement. The Settlor of the trust creates the trust terms, found in the trust agreement, that are used to administer the trust. Among other things, the trust terms dictate when and how the trust assets should be distributed to the beneficiaries.
What Type of Trust Are You Creating?
All trusts fall into one of two broad categories: testamentary and living trusts. A testamentary trust is created through a provision in the Settlor’s Last Will and Testament, meaning that the trust is not created and administered until after the death of the trust creator. A living trust, on the other hand, is created and administered while the Settlor is alive (although it may extend beyond the Settlor’s death). A living trust may be revocable or irrevocable. As the terms suggest, a revocable trust can be modified or revoked by the Settlor at any time whereas an irrevocable trust cannot be modified or revoked for any reason.
Who Can Access Trust Assets in Florida?
Understandably, you may be hesitant to transfer assets into a trust if you do not understand who controls those assets after the transfer. When addressing the control of trust assets, it is necessary to consider two things: who is the Trustee and what type of trust is involved.
The Trustee’s job is to administer the trust and to manage the trust assets. Consequently, it is easy to say that the Trustee of a trust controls assets once they are transferred into a trust. While that is true, it is not a complete answer.
Looking at the type of trust involved is necessary as well. If you create a revocable living trust, for example, you may name yourself as the Trustee of the trust, something that is often done as part of a larger incapacity plan. In that case, you clearly continue to control the trust assets because you are the Trustee. In addition, regardless of who you appoint as the Trustee of a revocable living trust, you retain the ability to modify or revoke the trust. As such, you effectively retain a significant amount of control over the trust assets because you can simply transfer them out of the trust whenever you want.
If, however, you create an irrevocable living trust, you do give up control over the trust assets once they are transferred into the trust. Although you can legally name yourself as the Trustee of an irrevocable trust, doing so would negate the most common benefit of creating such a trust – asset protection. Because an irrevocable living trust is considered a separate legal entity and because the Settlor cannot access the trust assets, the law considers assets held by an irrevocable trust to be out of the grasp of creditors of the Settlor. In short, you do lose control over assets held by an irrevocable living trust.
Do You Have Additional Questions about Trust Assets in Florida?
To learn more, please join us for an upcoming FREE seminar. If you have additional questions about your ability to access trust assets in Florida, please contact an experienced Vero Beach trust attorney at Kulas Crawford & Smith by calling (772) 398-0720 to schedule a consultation.
- What High-Net-Worth Families Should Know About Asset Protection in Florida - August 12, 2026
- Common Mistakes to Avoid during Florida Estate Administration - July 29, 2026
- 7 Estate Planning Mistakes to Avoid in Your Florida Estate Plan - July 15, 2026