Based on the Hack your wealth site:
Completeness of the Trust Template
The uploaded document provides a comprehensive framework for a revocable living trust, covering many essential aspects that such an agreement should include. Here’s how complete it is:
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Trust Establishment: Defines the trust’s name, trustees, and beneficiaries clearly.
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Definitions: Offers clear definitions for terms used throughout the document, which is crucial for avoiding ambiguity.
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Trustee Powers and Duties: Extensively lists the powers of the trustee, which is very thorough.
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Incapacity and Succession: Detailed provisions for handling trustee incapacity and succession, which are typically necessary for trust management.
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Rights Reserved by Grantor: Includes rights to amend, terminate, withdraw, and add assets to the trust, reflecting the revocable nature of the trust.
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Beneficiary Rights: Clearly delineates beneficiary rights and interests, including spendthrift, support, and discretionary trust provisions.
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Administration and Termination: Covers administration post-grantor’s death, small trust termination, and other administrative duties.
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Legal Clauses: Includes severability, governing law, notices, and perpetuities clauses, which are standard for legal completeness.
Parts Not Legal in Florida
While the document seems largely compliant with general trust law principles, here are some considerations for Florida:
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Governing Law: The document specifies California law if grantors are domiciled in different states or if neither is alive. Florida trusts must be governed by Florida law for residents unless there’s a specific reason for another jurisdiction, which might not be advisable without legal counsel.
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Perpetuities: Florida has modified its rule against perpetuities to allow trusts to last for up to 360 years from creation, which differs from the document’s reference to “applicable laws.” The document should specify Florida’s statute for clarity.
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Notary Acknowledgment: The notary acknowledgment is for California, not Florida. Florida requires a specific acknowledgment form or language for notarization of trusts.
Omitted Parts
Several elements might be missing or could be expanded for a more complete trust document, particularly tailored for Florida:
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Homestead Property: Florida has specific laws regarding homestead property that might need explicit mention if such property is included in the trust to ensure compliance with Florida’s homestead exemption rules.
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Trust Funding: While the document mentions adding assets, it lacks detailed instructions or mechanisms for how assets should be titled into the trust, which is critical for trust funding and avoiding probate.
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Tax Planning: There’s a lack of specific mention of Florida’s estate tax implications or how the trust might interact with federal estate taxes. Given Florida does not have a state estate tax, this might be less critical but still relevant for comprehensive planning.
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Trustee Compensation: The document sets a minimal compensation of $1 per year, which might not be practical or sufficient, especially for non-family trustees. Florida law allows for reasonable compensation unless otherwise specified.
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Pet Trusts: If the grantors have pets, Florida law allows for pet trusts, which might be an omitted but potentially relevant detail.
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Dispute Resolution: The document does not specify mediation or arbitration for resolving disputes, which could be beneficial for avoiding litigation.
In summary, while this template covers many foundational elements of a revocable living trust, adjustments for Florida law specifics, particularly regarding homestead, notary acknowledgment, and trust funding, are necessary. Additionally, some areas could be expanded for a more tailored and legally robust document in Florida. Consulting with an estate planning attorney in Florida would be advisable to ensure all legal nuances are adequately addressed.