You’ve packed up your life and moved to Florida. Maybe you’re escaping cold winters or high taxes. But what happens to the trust you created back in your old state?
It’s a fair question. Most people don’t realize their estate planning documents need a second look after relocating. The short answer? Your out-of-state trust is still valid. But that doesn’t mean it’s working as well as it could.
At Hirani Law, we regularly work with clients who’ve brought trusts from other states. Sometimes these documents need minor tweaks. Other times, they need significant updates to work properly under Florida law.
Optimize Your Trust
Here’s what you need to know right away. A trust created in another state doesn’t become invalid just because you moved. Trusts are typically governed by the law of the state where they were established, and that remains true even after you relocate.
But there’s a catch. Florida law will now apply to certain aspects of how your trust operates. Different states have different rules about trust administration, creditor protection, and taxation. What worked perfectly in New York or California might not give you the same advantages here.
Think of it this way. Your trust is like a car registered in another state. It still runs. You can still drive it. But you’ll probably want to register it in Florida and make sure it meets local requirements.
When You Should Review Your Trust
Not every out of state trust needs changes. But certain situations really do call for a review by a Winter Park trust lawyer:
- You’re named as a trustee, and you’re now a Florida resident
- The trust owns Florida real estate or other property here
- You want Florida’s strong asset protection benefits
- Tax provisions reference your former state’s laws
- The trust language doesn’t match the current Florida statutes
Some of these issues are minor. Others can create real problems for your beneficiaries down the line.
Why Florida’s Laws Matter For Your Trust
Florida isn’t just another state when it comes to trusts. We’ve got some of the best asset protection laws in the country. No state income tax. Strong homestead protections. These aren’t small perks.
If your trust was drafted in a state with different laws, you might be missing out. And you won’t know unless someone who understands Florida law reviews your documents.
Florida also has specific rules about how trustees must operate. Notification requirements are different here. Accounting obligations work differently. Your old trust might not address these Florida-specific requirements at all.
You Don’t Always Need To Start Over
Many clients worry they’ll have to create an entirely new trust. That’s rarely the case. We can often amend your existing trust rather than drafting a new one from scratch.
The job begins with a review, looking for potential issues to fix and making necessary amendments. At times, we’ll address choice of law provisions. There are also situations in which administrative language or other provisions need to be altered to fully take advantage of Florida’s laws.
We start by reading your original trust document carefully. Every word matters in these documents, so we’re looking for provisions that either conflict with Florida law or fail to use Florida’s benefits. Next, we figure out which state’s laws should govern your trust going forward. Many trusts include choice of law provisions, and we can modify these to apply Florida law where it makes sense. Then we update the administrative nuts and bolts. Trustee powers, beneficiary notifications, and accounting procedures. These all need to align with Florida statutes.
If you own property here, we’ll also help you retitle those assets into your trust properly. A Winter Park trust lawyer can walk you through each step.
The Tax Angle You Can’t Ignore
Florida’s lack of state income tax is huge for trust beneficiaries. But if your trust document still references tax laws from your former state, that’s a problem. We review these provisions to make sure they make sense under Florida law and current federal tax regulations.
Some irrevocable trusts have tax implications that change based on where the grantor lives. Moving to Florida can shift how these trusts are taxed. In some cases, you’ll find opportunities for significant tax savings.
Don’t assume your accountant back home thought about this. They probably didn’t.
Get Your Trust Reviewed
You wouldn’t drive across the country without checking your car first. Don’t settle into Florida life without checking your trust.
Small changes now can prevent massive headaches for your family later. We’ve seen beneficiaries struggle with trusts that weren’t properly adapted to Florida law. It’s avoidable.
Our team at Hirani Law has worked with dozens of clients who relocated here with existing trusts. We understand how to keep the core intent of what you created while making it work under Florida law.
Whether you moved here last month or five years ago, it’s worth having your trust reviewed. Contact us to discuss your situation. We’ll look at what you have and explain what changes, if any, make sense for protecting your estate under Florida law.