How Long Can a Trust Last in Florida?
When assessing your estate planning options in Tampa, it always makes sense to consider the “bigger picture.” Instead of thinking only about their children, you might have a much longer timeline in mind. What happens when your children have children of their own? What about your great-grandchildren? How many generations could a trust protect from financial uncertainty? When handled correctly, a trust can last for an extremely long time in Florida.
Perpetuities Are Not Allowed in Florida
Like many other states, Florida does not allow “perpetuities.” These are trusts that theoretically have the potential to last forever, with no “expiry date.” Some states allow perpetual trusts, including Hawaii, Maine, and New Hampshire.
Perpetual trusts are also called “dynasty trusts” or “legacy trusts.” The general goal is to provide financial support for beneficiaries into the foreseeable future. However, these trusts can be complex – as there is no telling what the future might bring. There is no sense in transferring trust assets to beneficiaries who are heavily in debt, for example. This could wipe out the family fortune in a few short months – explaining why most dynasty trusts have spendthrift or “drip-feed” provisions.
Florida Trusts Can Last 1,000 Years
While Florida has a law against perpetual trusts, this is somewhat misleading. Trusts in the Sunshine State can last up to 1,000 years – which is more than most families would ever need. To provide some context, this would be equivalent to a modern individual drawing income from a trust established in the time of the Crusades. Families rarely maintain their wealth for such a long period of time, and even royal bloodlines eventually fade from existence. One of the oldest known trusts in existence today is the Rockefeller Foundation, which has existed for barely a century.
In other words, Florida’s 1,000-year trusts are perpetual for all intents and purposes. This is a relatively new development, and in 2022 trusts established in Florida expired within “only” 360 years.
Consider Other Options Before Creating a Legacy Trust
Although a legacy trust might seem like an intriguing endeavor in Florida, there are various disadvantages to consider. First and foremost, these trusts are irrevocable – and you cannot make any changes to them after their formation. This highlights the need for careful planning beforehand, and a more flexible irrevocable trust could be more appropriate for many families. At the end of the day, it makes sense to discuss these various pros and cons with an experienced estate planning attorney before choosing a specific type of trust.
Can a Seminole County Estate Planning Lawyer Help With Perpetuities?
A Tampa trusts lawyer may be able to help you with perpetuities, legacy trusts, and other long-term plans. Choose Knudsen Law to discuss these options in more detail. We know that you might have ambitious goals for your family dynasty, and we’re here to help you achieve them with confidence. Each family is slightly different, and online research cannot address your unique goals and priorities. Book a consultation with us today to continue this important discussion.
Sources:
flsenate.gov/laws/statutes/2021/689.225
resource.rockarch.org/story/rockefeller-foundation-history-origins-to-2013/
