For Miami residents in Coral Gables, Brickell, or Key Biscayne, deciding between a revocable living trust and a will is a cornerstone of estate planning. With the 2025 Tax Cuts and Jobs Act (TCJA) exemption dropping to approximately $7 million and Florida’s probate reforms (HB 923) streamlining but not eliminating probate complexities, choosing the right tool is critical. Florida’s lack of state estate tax and robust homestead protections make both options appealing, but each serves distinct needs for families in Sunny Isles Beach, Coconut Grove, or Doral.
This article compares revocable living trusts and wills, their benefits in Florida’s 2025 legal landscape, and practical guidance to choose the best tool for your estate. Whether you’re planning for a modest home in Palmetto Bay or a complex portfolio in Wynwood, these insights will help you secure your legacy.
Understanding Revocable Living Trusts and Wills
Revocable Living Trust
A revocable living trust is a legal entity you create to hold assets during your lifetime, with the ability to modify or revoke it. Upon death, assets transfer to beneficiaries without probate.
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How It Works: Transfer assets (e.g., a $1 million Brickell condo) to the trust, naming yourself as trustee and beneficiaries for after your death.
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Key Features: Avoids probate, maintains privacy, and allows incapacity planning.
Will
A will is a legal document outlining how your assets should be distributed after death, effective only upon passing and typically requiring probate.
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How It Works: Specify beneficiaries and executors for assets (e.g., a Doral business). A probate court oversees distribution.
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Key Features: Simpler to create, but public and subject to probate delays.
Florida Advantage: No state estate tax enhances both tools’ efficiency, but 2025 reforms (HB 923) and homestead laws impact their application.
Comparing Benefits in Florida’s 2025 Landscape
Revocable Living Trust Benefits
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Probate Avoidance: Bypasses Florida’s probate process, which can take 6–12 months and cost $10,000–$50,000, even with HB 923 reforms.
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Privacy: Keeps asset details confidential, unlike public probate records, ideal for high-profile estates in Sunny Isles Beach.
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Incapacity Planning: Allows a successor trustee to manage assets if you’re incapacitated, critical for retirees in Key Biscayne.
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Flexibility: Amendable during your lifetime, accommodating changes for Coconut Grove families.
Will Benefits
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Simplicity and Cost: Cheaper to create ($500–$2,000 vs. $2,000–$5,000 for trusts), suitable for smaller estates in Palmetto Bay.
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Guardianship for Minors: Names guardians for children, essential for young families in Doral.
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Homestead Compatibility: Works with Florida’s homestead laws (Florida Statute 196.031) for direct transfers.
Drawbacks
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Trusts: Higher upfront costs and require asset retitling; not ideal for simple estates.
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Wills: Subject to probate delays and public disclosure, risking disputes in blended families in Coral Gables.
Why the Choice Matters in 2025
Key factors highlight the decision’s importance:
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TCJA Sunset: The $7 million exemption increases estate tax exposure, making probate avoidance via trusts more valuable for larger estates.
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Probate Reforms: HB 923 streamlines small estates ($100,000 threshold) but doesn’t eliminate costs for complex estates.
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FUFIPA Updates: 2025 updates clarify trust distributions, enhancing trust reliability.
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Miami’s Wealth: High-value real estate and businesses amplify the need for efficient planning.
For example, a Brickell estate’s $3 million probate was delayed 18 months with a will. A trust could have saved $40,000 and six months.
5 Strategies to Choose Between Trusts and Wills in 2025
1. Assess Estate Size and Complexity
Use trusts for larger or complex estates, wills for simpler ones.
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How It Works: Choose a trust for a $5 million Coral Gables estate with real estate and investments; opt for a will for a $500,000 Palmetto Bay home.
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Benefit: Matches tool to needs, saving costs and time.
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Action Step: Consult a Miami probate attorney to evaluate your estate’s needs.
2. Prioritize Probate Avoidance for Privacy
Select a trust to bypass probate and maintain confidentiality.
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How It Works: Fund a trust with a Key Biscayne property, avoiding public probate filings and disputes.
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Benefit: Protects privacy for high-net-worth families in Sunny Isles Beach, aligned with 2025 HB 923.
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Action Step: Work with a Florida estate planning lawyer to draft a trust compliant with Florida Statute 736.0403.
3. Plan for Incapacity with Trusts
Use trusts to manage assets during incapacity.
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How It Works: Name a successor trustee to handle your Coconut Grove investments if you’re incapacitated, avoiding court guardianship.
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Benefit: Ensures seamless management, critical for retirees in Doral.
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Action Step: Engage a Miami attorney to include incapacity provisions in the trust.
4. Leverage Wills for Minor Children
Choose a will to designate guardians for young children.
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How It Works: Name guardians in a will for your children, ensuring their care in Wynwood families.
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Benefit: Provides legal clarity, complementing trusts for comprehensive planning.
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Action Step: Partner with a Florida probate lawyer to draft a will compliant with Florida Statute 732.502.
5. Coordinate with Tax Planning
Align your choice with 2025 TCJA tax strategies.
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How It Works: Use trusts to leverage the $14.18 million exemption before sunset, or wills for smaller estates under $7 million to maximize step-up in basis.
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Benefit: Minimizes taxes for Brickell estates, saving up to $400,000.
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Action Step: Consult a Miami estate planning attorney to run tax scenarios and choose the best tool.
Why a Miami Probate Attorney is Essential
Florida’s unique legal landscape—no state estate tax, homestead protections, and 2025 FUFIPA updates—requires local expertise. A Miami probate attorney can:
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Draft trusts or wills compliant with Florida Statutes 736.0403 and 732.502.
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Navigate 2025 probate reforms (HB 923) for efficient administration.
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Coordinate homestead protections and tax planning.
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Mitigate disputes, common in complex estates in Coral Gables.
For example, a Sunny Isles Beach family’s will triggered a $30,000 probate dispute. A Miami attorney switched to a trust, saving $25,000.
Choose the Right Tool for Your 2025 Estate
Revocable living trusts and wills each offer unique benefits for Florida estates. By assessing your estate’s complexity, prioritizing privacy, and planning for taxes, you can select the right tool to secure your legacy in Miami’s 2025 landscape.
