Legal Declaration of Trust
What is a declaration of trust?A declaration of trust is when a title holder to a piece of property makes a statement that the property is being held for another person’s benefit. In most cases the property is placed into a trust that is overseen by a trustee. The declaration of trust states whom the trust benefits, who can make changes or revoke the trust, who will serve as the trustee, and what the trustee can or cannot do with the trust. The declaration of trust also outlines what will happen if a beneficiary wants to receive the assets of the trust.
In the state of Florida, if a couple is separated, how can they take the name of the other spouse off of the deeds or titles to any property when they have a declaration of trust?If both spouse’s names are on the deeds, then the spouse that wants their name removed will have to sign a Quit Claim Deed. The spouse would need to make sure that the Quit Claim Deed is from the spouse that is the grantor of the declaration of trust and it is signed to the other spouse as the person receiving the Quit Claim Deed. The person receiving the deed would then need to file it with the Florida tax office to reflect the changes.
If a person is the sole beneficiary of a parent’s assets, should the parent fill out a declaration of trust to avoid the probate process?There may be a couple of things that the person may want to do. The first thing may be for the parent to place the child’s name on the deed of the property. The second thing may be for the parent to file a declaration of trust and place the property and assets into the trust, which will avoid the probate court.
What is an irrevocable inter vivos trust?A vivos trust is a type of trust that is also known as a declaration of trust. This type of trust is used while the person who made the trust is still alive and is also sometimes called a living trust. The person’s property and assets are placed in the trust with the trustee distributing the property in accordance with the terms of the trust. This is different from a testamentary trust because this type of trust is taken care of while the person is alive and now after the person is deceased and a will places assets and property into a trust.
Would it be legal for a sibling to place a quit claim deed against a house in a declaration of trust?If the parent had the mental capacity to quit claim deed the house to the sibling after making a declaration of trust, then this is legal and the sibling will own the house. The sibling would still have to pay capital gain taxes on the home, which would have been avoided of the home, had stayed in the trust. If the person can prove that the parent was unduly influenced, then there will be a court hearing and if proven, then the house will be placed back into the trust and disbursed equally among the beneficiaries.
When a person is setting up their property or assets before they pass away, they may make a declaration of trust to help disburse their assets to beneficiaries that they want to benefit from the assets of the trust. When a person is a beneficiary or the person that sets up the declaration of trust, then he/she may have questions regarding how to set the declaration of trust up or how the laws are regarding the declaration of trust. When these questions arise, then the person may want to seek the help and answers from an Expert.