Attorney Rachel Barlow, Shareholder at The Diamond Law Firm, P.A. and Board Certified by The Florida Bar in Wills, Trusts, and Estates, recently addressed the use of joint revocable trusts in an article published in the March/April 2026 issue of the St. Petersburg Bar Association Paraclete. Her article, “Two Sides of the Same Trust,” explains the significant risks and advantages associated with joint revocable trusts in Florida.
The Appeal of the Joint Structure
Joint revocable trusts are often popular because they feel familiar. They allow a married couple to consolidate their assets into a single entity, which can simplify titling and make things easier for a successor trustee if a spouse becomes incapacitated. Furthermore, under the Florida Community Property Trust Act, these trusts are the only way for couples to potentially qualify for a full “step-up” in tax cost basis upon the first spouse’s death, which can lead to significant income tax savings.
Looking Beneath the Surface
While the advantages are clear, Rachel’s article highlights three significant risks that every couple should consider:
- Loss of Creditor Protection: One of Florida’s strongest legal protections is “tenancy by the entirety” (TBE), which shields joint property from the individual creditors of one spouse. Moving those assets into a joint trust may inadvertently break this shield, exposing your home or savings to claims that would otherwise be barred.
- The Power to Amend: Disputes often arise after the first spouse passes away regarding whether the survivor has the right to change the trust terms. Without crystal clear language, this ambiguity can lead to litigation, particularly in blended families where there is a desire to protect children from a previous marriage.
- Administrative Hurdles: Ironically, the “simple” joint trust can become quite complex to administer when the first spouse dies. Determining exactly what constitutes each spouse’s “share” for tax and distribution purposes can be difficult if records and drafting aren’t precise.
Planning for the Long Term
Estate planning is never one size fits all. Whether a joint trust, separate trusts, or a hybrid strategy is right for you depends on your specific goals for creditor protection and tax efficiency. We invite you to read Rachel’s full analysis in the March/April 2026 issue of the Paraclete to learn more about how to protect your family’s legacy.
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