New Estate Trust Law for Floridians
This past May, Governor Ron DeSantis signed a new trust law into effect that includes a provision which will make certain Spousal Limited Access Trusts (“SLATs”) more beneficial to Florida residents as an asset protection tool. Floridians who form them after June 30, 2022 will have the ability to allow the contributing spouse to be a beneficiary of the trust in the event of the death of the beneficiary spouse. This change, contained in Florida Statute 736.0505(3), as amended, effectively allows for a Florida SLAT to transform into an asset protection trust for the benefit of the contributing spouse following the death of the beneficiary spouse.
This new Florida law, provides a significant advantage that has not been available until now in creating a trust that is formed and funded by one spouse for the benefit of the other spouse which can be used to shield the trust assets from creditors of both spouses and from federal estate tax.
If you would like more information about a SLAT or are looking to set up a trust account, be sure to undertake the process with the assistance of a professional estate planning attorney. The team at KLG is here to help you determine whether this is the right strategy for you and guide you through the legal nuances. Schedule a complimentary consultation today.