What Assets Should (and Shouldn’t) Go Into a Florida Trust?

Setting up a Florida trust can provide long-term security, tax advantages, and smoother transitions of wealth. But deciding which assets to transfer into that trust takes careful planning. Misplacing the wrong property or leaving out critical items can cause legal complications or defeat your goals. Our role as real estate and estate planning attorneys is to help you make those decisions with clarity. If you’re looking to understand what belongs in a Florida trust, this guide covers what to include, and what to avoid.

Common Assets That Belong in a Florida Trust

Many assets work well inside a trust and support your estate planning objectives. These items are typically stable, valuable, and not tied up in ongoing liabilities or conflicts. Placing them in a trust allows for easier distribution to beneficiaries and protection from probate delays.

Assets often placed into a trust include:

• Real estate, including your primary Florida residence

• Second homes, investment properties, or vacant land

• Financial accounts like savings, CDs, or brokerage portfolios

• Business interests, such as LLC membership or corporate shares

• Valuable collectibles, jewelry, or family heirlooms

• Life insurance policies (naming the trust as beneficiary)

Adding these assets helps centralize your estate and can simplify transfers after death. Our attorneys help prepare deeds, assign ownership correctly, and ensure compliance with Florida law.

Property You Should Consider Keeping Out of the Trust

Some items may be better left outside of your trust to avoid triggering unnecessary taxes, liability, or confusion. It’s not that these assets can’t go into a trust, but doing so may reduce flexibility or create administrative burdens.

Assets usually left out of a trust include:

• Vehicles, especially those still actively driven

• Retirement accounts like IRAs or 401(k)s

• Health savings accounts (HSAs)

• Everyday checking accounts used for monthly expenses

• Personal-use items such as clothing, appliances, or furniture

Instead of retitling these into a trust, you can name payable-on-death (POD) or transfer-on-death (TOD) beneficiaries where allowed. We help clients align these choices with their estate goals without disrupting daily life.

The Role of Homestead Property in Florida Trusts

Florida’s homestead laws are unique, and they interact with trust law in complex ways. You can place your primary home into a revocable trust, but it must be done carefully to preserve your constitutional homestead protections.

Key considerations include:

• Drafting deed language that preserves tax and creditor protections

• Avoiding any language that could jeopardize your homestead exemption

• Ensuring the trust does not limit your right to reside in the home

• Verifying the trust’s terms reflect your wishes if you become incapacitated

• Navigating spousal consent requirements under Florida law

We review trust documents and homestead deeds to ensure proper treatment and compliance.

Should You Put Rental Properties in the Trust?

Placing rental properties into a trust can help avoid probate and support income management after your death. However, you’ll want to be mindful of how it impacts liability, insurance, and property management rights.

Before transferring a rental property into a trust, consider:

• Whether the property is owned personally or via an LLC

• How rents will be collected and managed by a successor trustee

• Insurance adjustments to reflect trust ownership

• Coordination with leases and tenant communication

• Whether the trust grants sufficient powers to act quickly in emergencies

We frequently assist Florida landlords with trust-based planning that balances asset protection and operational needs.

Can You Put a Bank Account in a Florida Trust?

Yes, most bank accounts can be placed into a trust, especially if they hold savings or are used for long-term purposes. However, active accounts used for daily expenses are generally better left in individual ownership.

When assigning bank accounts to a trust, we recommend:

• Working with the bank to update titles and signature cards

• Using clear naming conventions to reflect the trust’s role

• Keeping one account in your individual name for routine bills

• Establishing trust checking accounts if the trustee needs access after incapacity

• Including the account in your written trust schedule or funding memo

We guide you through the paperwork and ensure each account supports your broader estate plan.

Life Insurance and Trusts: Coordinating Beneficiaries the Right Way

You can’t technically “transfer” a life insurance policy into a revocable trust, but you can name the trust as a beneficiary. This ensures that upon death, the proceeds flow into the trust and are distributed per its terms.

Here’s how to structure this properly:

• List the trust as the primary or contingent beneficiary on your policy

• Avoid naming minor children directly as beneficiaries

• Match your trust provisions to how you want the funds used

• Use this method to protect life insurance from probate

• Update policies if your trust terms change later

We review policies alongside your estate plan and ensure your intentions carry through.

Assets That Automatically Avoid Probate—Without a Trust

Not all estate planning requires a trust. Some assets avoid probate through beneficiary designations or joint ownership structures. If these are already in place and properly titled, you might not need to include them in your trust.

These include:

• Jointly titled bank accounts with rights of survivorship

• Retirement accounts with valid beneficiary designations

• Life insurance with named individual beneficiaries

• TOD or POD designations on brokerage or checking accounts

• Real estate held as tenants by the entirety (for married couples)

We evaluate how these items interact with your trust to avoid duplication or confusion.

Why Timing Matters When Funding Your Trust

Even well-written trusts fail when they’re never funded. You must actively transfer assets, update deeds, or assign ownership. Waiting too long may result in assets falling back into probate, which defeats the purpose of creating the trust.

Important timing tips:

• Fund the trust shortly after it’s created

• Review funding regularly after major life changes

• Coordinate funding when purchasing real estate

• Confirm titling with financial institutions

• Work with an attorney to avoid omissions or missteps

Our trust creation attorneys handle every step—from drafting to funding, so nothing is left out.

Florida Trust Asset FAQs

What types of property should always be included in a Florida trust?

Assets that benefit from avoiding probate and simplify distribution should be included. These typically include Florida real estate, brokerage accounts, non-retirement financial assets, and business interests. Including them ensures smoother transitions, reduces court involvement, and provides long-term control.

Can I put my house into a Florida trust and still qualify for homestead exemptions?

Yes, but the deed and trust must be structured carefully. Florida homestead protections can remain intact if your trust preserves your right to reside and avoids language that jeopardizes exemption. We help ensure your homestead retains tax benefits and creditor protections.

Should retirement accounts like IRAs or 401(k)s go into a trust?

No, retirement accounts should generally remain outside the trust. You can instead name the trust as a beneficiary if needed, depending on your estate goals. Direct transfers can trigger tax issues, so careful beneficiary planning is preferred.

What happens if I forget to move assets into my trust?

If your trust isn’t funded, assets may still go through probate. This delays distribution and may conflict with your intentions. Our attorneys help ensure all eligible assets are properly transferred to avoid this risk.

Can I put my car or vehicle into a Florida trust?

Vehicles are typically left out of trusts due to ongoing use and insurance complications. It’s usually better to handle them separately or through a small estate affidavit if needed. We can guide you based on your situation and the car’s value.

Should I include my checking account in the trust?

If it’s used daily for bills, it may be best to keep it outside the trust. You can still designate a payable-on-death beneficiary for streamlined transfer. Trust checking accounts are better suited for managing post-death expenses and distributions.

What if I own out-of-state property?

Out-of-state real estate should often be placed into your Florida trust to avoid multiple probate proceedings. We help coordinate deed transfers and ensure your trust holds title properly. This simplifies your estate across jurisdictions.

Can I use a trust to manage rental property income and tenants?

Yes, a trust can hold rental property, but it needs the right language to allow for management and repairs. You’ll also need to update insurance and notify tenants if applicable. Our attorneys tailor trust provisions to ensure smooth landlord operations.

Is life insurance placed into a Florida trust?

You don’t transfer the policy itself into the trust, but you can name the trust as beneficiary. This allows the proceeds to be managed under the trust’s terms after death. It’s especially useful when minors or spendthrift heirs are involved.