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Florida Estate Planning: Why a Trust Isn’t Always Best
- atCause Law Office
- Oct 29
- 3 min read
In Florida estate planning, one common question stands out: Why not just put real property in a trust to avoid probate? While a revocable living trust is often the gold standard for transferring assets seamlessly, it isn’t always the most practical or cost-effective choice. Sometimes, adding heirs to a deed with rights of survivorship—or using a Lady bird deed—makes more sense depending on your financial situation, family dynamics, and long-term tax goals.
This guide breaks down real-world scenarios from a Florida estate planning attorney’s perspective, explaining when a trust may not be the best option and why alternatives like joint ownership or enhanced life estate deeds can save money and preserve benefits like the Florida homestead tax exemption.
Why Trusts Aren’t Always the Default Choice
A trust—especially a revocable living trust—is a powerful tool in estate planning. It avoids probate, maintains privacy, and allows detailed control over asset distribution. However, trusts cost more upfront than simple deed changes.
For many Floridians with modest estates, the added expense of drafting, funding, and maintaining a trust may not justify the benefits—especially when the primary goal is simply avoiding probate on a homestead property.
Scenario 1: Simple Estate? A Lady Bird Deed May Be Enough
Consider a homeowner with:
A primary residence (homestead property)
A few bank accounts
One child as the sole heir
In this case, you can:
Designate the child as a payable-on-death (POD) beneficiary on bank accounts.
Execute a Lady Bird Deed (also called an enhanced life estate deed) naming the child as remainder beneficiary.
Benefits of a Lady Bird Deed:
Avoids probate
Retains full control of the property during your lifetime
Allows Medicaid planning flexibility (5-year lookback friendly)
Significantly cheaper than creating and funding a trust
Pro Tip: Pair the Lady Bird deed with essential incapacity planning documents:
Durable Power of Attorney
Healthcare Surrogate Designation
Living Will
These cover decisions while you’re alive but unable to act—something a deed alone can’t do.
Scenario 2: Child Already Lives in the Home? Joint Ownership Preserves Homestead Tax Cap
Here’s a lesser-known but powerful strategy: Add your child to the deed as a joint tenant with right of survivorship (JTWROS)—if they already live in the home and plan to stay.
Why This Works in Florida:
When a child inherits a home through probate, a trust, or a Lady Bird Deed, they lose the parent’s homestead tax cap. The property is reassessed at current market value, and their new homestead exemption starts from that higher amount—often leading to a sharp increase in property taxes.
But when the child is already on the deed and living in the home as their primary residence:
They qualify for homestead immediately
The existing 3% annual tax cap continues uninterrupted
Upon the parent’s passing, ownership transfers automatically via survivorship—no reassessment
This strategy keeps property taxes low for life—something neither a trust nor inheritance can achieve.
Key Takeaway: One Size Does Not Fit All in Florida Estate Planning
While trusts are excellent in many cases, they’re not the only—or best—option for everyone.
Modest estate, one heir, tight budget? Use a Lady Bird Deed + POD accounts.
Child lives in home permanently? Choose Joint Tenancy with Right of Survivorship.
Complex assets, multiple heirs, privacy needs? Go with a Revocable Living Trust.
Next Steps: Consult a Florida Estate Planning Attorney
Before choosing between a trust, Lady Bird deed, or joint ownership:
Assess your full financial picture
Confirm homestead status and tax implications
Plan for incapacity (POA, healthcare directives)
If you’re in Florida and need personalized guidance on deeds, trusts, probate avoidance, or elder law, contact the experienced team at atCause Law Office.
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