Signing a revocable living trust is only half the job. If you never transfer assets into it, the trust is an empty shell and your property still goes through Miami-Dade probate. Funding is the step that makes a Florida trust work. Here is a practical checklist.
What “funding” actually means
Funding means changing the legal ownership or beneficiary of your assets so they are controlled by your revocable trust (governed by Chapter 736 of the Florida Statutes). For some assets that means retitling them in the name of the trust; for others it means naming the trust as a payable-on-death or contingent beneficiary.
Step 1: Transfer your Florida real estate
To move your Miami home or a Brickell condo into the trust, you record a new deed conveying the property from you individually to you as trustee. Florida homestead deserves special care: because of the constitutional protections in Article X, Section 4, transferring a homestead into a revocable trust must be done correctly so you do not jeopardize creditor protection or homestead status. This is a step to coordinate with an attorney, not a DIY form.
Step 2: Retitle bank and brokerage accounts
Contact your bank or brokerage and re-register checking, savings, and non-retirement investment accounts in the name of the trust. The account ownership should read in the name of your trust with you as trustee. Keep a small operating account in your own name for day-to-day bills if that is easier.
Step 3: Handle retirement accounts carefully
Do not retitle IRAs or 401(k)s into the trust; that can trigger immediate taxation. Instead, review the beneficiary designations and decide, with professional guidance, whether to name individuals or the trust as beneficiary. The right answer depends on your family and tax goals.
Step 4: Coordinate life insurance and annuities
You generally keep ownership but update the beneficiary designation. Naming the trust as beneficiary can be useful when you want the proceeds managed for young children or other heirs rather than paid outright.
Step 5: Address business interests and other assets
LLC membership interests, partnership stakes, and valuable personal property can be assigned to the trust. A Miami business owner should confirm the operating agreement allows the transfer and update the company records accordingly.
Step 6: Back it up with a pour-over will
Even a diligently funded trust can miss an asset. A pour-over will catches anything left in your individual name and directs it into the trust, though those stray assets may still pass through probate first. Think of it as a safety net, not the main plan.
Keep funding current
Every time you buy a new Miami property, open an account, or acquire a significant asset, ask whether it should be titled in the trust. An unfunded new purchase quietly reopens the door to probate.
Consult a Florida attorney. Trust funding, especially involving Florida homestead and retirement accounts, has real legal and tax consequences. Work with a licensed Florida estate planning attorney to fund your trust correctly for your Miami-Dade situation.
For more on our Florida practice, see our overview of estate planning in Boca Raton. Morgan Legal Group's affiliated New York office also handles New York elder law.
