How Does a Trust Work in Miami-Dade County?

A trust is a legal arrangement in which one person (the grantor or settlor) transfers assets to another person or institution (the trustee) to hold and manage for the benefit of one or more beneficiaries. In Florida, trusts are governed by the Florida Trust Code, Chapter 736 of the Florida Statutes. But statutes only tell part of the story. What most Miami-Dade families actually want to know is: what happens in real life? How does a trust behave while you're healthy, if you become incapacitated, and after you pass? And how does it interact with a Coral Gables condo, a Miami Beach homestead, or a New York apartment you still own as a snowbird?

This page is our plain-English hub explaining how a trust functions in practice for South Florida residents. It is intentionally broad. When you need the deep dive on a specific structure or step, we link you to a focused article rather than repeating it here.

Written by Albert Goodwin, Esq., an estate planning and probate attorney admitted to The Florida Bar and the New York State Bar, whose practice includes drafting and administering Florida trusts and handling Miami-Dade probate and trust matters. Last reviewed: 2024.

Where This Page Fits — And Where to Go Next

Think of the material below as the map. If you already know which structure interests you, jump straight to a detailed guide:

• Living trusts in Florida — how they work and do I need one
• Irrevocable trusts in Florida and grantor trusts
• Asset protection trusts
• Avoiding probate in Florida
• Rights of a trust beneficiary and whether a trustee can sell property
• Lady bird deeds — a simpler alternative for a single Florida homestead

The Three Roles — And Why Miami Families Often Wear All Three

Every trust involves a grantor, a trustee, and a beneficiary. In the most common Miami estate plan — a revocable living trust — one person occupies all three roles during life. A retiree in Aventura, for example, creates the trust, names herself as trustee, and remains the primary beneficiary. Nothing about her daily financial life changes. The trust document then names a successor trustee (often an adult child, a trusted friend, or a professional fiduciary) to take over if she becomes incapacitated or dies, plus the remainder beneficiaries who ultimately inherit.

Once someone other than the grantor is acting as trustee, that person owes fiduciary duties under Fla. Stat. § 736.0801 — loyalty, impartiality, prudent administration, and keeping beneficiaries reasonably informed. This is exactly where many Miami-Dade trust disputes begin, and where we frequently see litigation over accountings and self-dealing.

Funding: The Step Most People Skip (And How It Works in Miami-Dade)

A signed trust document is an empty container until you fund it — meaning you retitle assets into the name of the trust. This is the single most common failure we see in Florida estate plans, and it is worth walking through concretely.

Real estate — deeds recorded with the Miami-Dade Clerk

To move a South Florida home or condo into your revocable trust, an attorney prepares a new deed transferring title from you individually to yourself as trustee. In Florida this is usually a quitclaim deed or special warranty deed, executed with two witnesses and a notary as required by Fla. Stat. § 689.01, then recorded in the Official Records of the Miami-Dade County Clerk of the Court. A few Miami-specific practice points:

• Documentary stamp tax: A transfer to your own revocable trust for no consideration is generally taxed only at the minimum ($0.70) rate — but a mortgaged property transferred incorrectly can trigger tax on the outstanding balance. Have the deed drafted with this in mind.
• Homestead: A properly drafted transfer of a Miami-Dade homestead to a revocable trust preserves the homestead property tax exemption and Save Our Homes cap. A sloppy transfer can jeopardize it. Coordinating with the Property Appraiser matters.
• Condominiums: Many Brickell, Miami Beach, and Coral Gables condo associations require notice or approval of a transfer, even to your own trust. Check the declaration first.

Some clients prefer a lady bird (enhanced life estate) deed for a single homestead instead of a full trust; we discuss the trade-offs on that page.

Financial accounts, business interests, and beneficiary designations

Bank and brokerage accounts are retitled into the trustee's name. LLC membership interests (common for South Florida rental and investment property) are assigned by amending the operating agreement and membership ledger. For retirement accounts and life insurance, you usually do not retitle the account — you review the beneficiary designation, because that designation, not your trust or will, controls who inherits.

Why this matters: Any asset still titled in your individual name at death — the boat, the last bank account you forgot, the second car — falls outside the trust and may require probate in Miami-Dade, which is precisely what the trust was meant to avoid.

How a Trust Works if You Become Incapacitated

Incapacity planning is where a funded revocable trust quietly earns its cost. Consider a common scenario: a Kendall homeowner develops dementia and can no longer manage her accounts. Because her assets are titled in her trust, the successor trustee simply presents the trust document and takes over — paying bills, managing investments, and preserving the home — without a court-supervised guardianship under Chapter 744.

Guardianship in Miami-Dade means a petition, a physician examination, an examining committee, court hearings, and ongoing annual reporting to the court — public, slow, and expensive. A trust sidesteps all of it. That said, a trust does not replace a durable power of attorney or health care surrogate; you still need those for assets outside the trust and for medical decisions. See our overview of incapacity planning.

How a Trust Works After the Grantor Dies

When the grantor of a revocable trust dies, the trust generally becomes irrevocable and the successor trustee administers it — a private process that runs parallel to probate but without court supervision or public filings. In practice, the successor trustee:

1. Secures and inventories trust assets and obtains date-of-death valuations;
2. Notifies qualified beneficiaries and provides required information under Fla. Stat. § 736.0813;
3. Pays the decedent's final debts and expenses;
4. Handles the final income tax return and any federal estate tax return; and
5. Distributes the remaining assets per the trust's terms.

Under Fla. Stat. § 736.05055, the trustee of a revocable trust may publish a notice to creditors and open a limited probate to shorten the creditor claim period — a strategic decision worth discussing, especially for grantors who owned a business or had significant liabilities. The trust document also controls timing: assets can pass outright, or be held for a beneficiary until a certain age or for health, education, maintenance, and support. Ongoing trust provisions are common for blended families and young beneficiaries; see estate planning for blended families.

Common Trust Mistakes We See in South Florida

• The unfunded trust. A beautiful binder and no retitled assets — the estate still goes through probate.
• Homestead missteps. Transferring a Florida homestead to certain irrevocable trusts, or in a way that violates Article X of the Florida Constitution, can defeat homestead protection. See homestead protection and inheriting homestead property.
• Out-of-state property. Snowbirds who keep a New York or New Jersey property in individual name may force their family into ancillary probate there — a trust holding that property avoids it.
• Naming the wrong successor trustee. A well-meaning but disorganized relative can create liability and family conflict, sometimes leading to removal litigation.
• Stale beneficiary designations that contradict the trust plan.

Revocable vs. Irrevocable — The Short Version

Under Fla. Stat. § 736.0602, a Florida trust is presumed revocable unless it says otherwise — a default that surprises people from states with the opposite rule. A revocable trust keeps you in full control, is ignored for income tax (your Social Security number, your 1040), and offers no creditor protection during life. An irrevocable trust generally cannot be changed, may remove assets from your taxable estate, and can provide asset protection and Medicaid planning benefits. We cover the details on the living trust, irrevocable trust, and Medicaid planning pages — including specialized structures like life insurance trusts, charitable trusts, and dynasty trusts.

Why Trusts Are Especially Useful for Miami-Dade Families

Miami-Dade has a large population of non-resident and dual-country owners, snowbirds, retirees, and multi-property investors — all situations where a trust does real work. Florida has no state income tax and no state estate tax, but federal estate tax still applies above the exemption. Probate fees here are often tied to estate value. A properly funded trust avoids probate, keeps your affairs private in a county where court records are readily searchable, smooths incapacity, and consolidates out-of-state holdings to avoid multiple ancillary probates. For non-U.S. citizens who own Miami real estate, trust and entity planning also intersects with U.S. estate tax exposure — an area where tailored advice is essential.

Frequently Asked Questions

Does a trust avoid probate in Miami-Dade County?

Yes — but only for assets actually titled in the trust. A funded revocable trust lets your successor trustee distribute assets without a Miami-Dade probate. Anything left in your individual name may still require probate.

Do I still need a will if I have a trust?

Yes. Most trust plans include a "pour-over" will that catches assets you forgot to transfer and directs them into the trust, and it also handles guardianship of minor children.

Can I move my Florida homestead into a revocable trust without losing my tax exemption?

Generally yes, when the deed is drafted correctly to preserve homestead status. Errors can jeopardize the exemption, the Save Our Homes cap, and constitutional creditor protection, so this should be done carefully.

Who can be my successor trustee in Florida?

Any competent adult or a Florida-authorized trust company. Many families choose a responsible child, a professional fiduciary, or a bank trust department for larger or contentious estates.

Is a trust or a lady bird deed better for a single Florida home?

If your only significant asset is one Florida homestead, a lady bird deed may accomplish probate avoidance more simply. A trust is usually better where there are multiple assets, out-of-state property, minor beneficiaries, incapacity concerns, or complex distributions.

How much control do I give up with a revocable trust?

None during your lifetime. You can amend or revoke it, buy and sell assets, and manage everything as before. Control only shifts to your successor trustee upon incapacity or death.

Talk to a Miami-Dade Trust Attorney

Whether you are considering creating a trust, need help funding one correctly, or have been named a trustee or beneficiary of an existing Florida trust, the Law Offices of Albert Goodwin, PA can help. We serve clients throughout Miami-Dade, Broward, and Palm Beach counties from our office at 121 Alhambra Plaza #1000, Coral Gables, FL 33134. Call 786-522-1411 or email [email protected] to schedule a consultation.

This article is general legal information about Florida trust law and is not legal advice for your specific situation. Reading it does not create an attorney-client relationship.