Is a trust legally binding?

Yes, a trust is legally binding if it is executed correctly and the trust is irrevocable. However, if the trust is revocable, then the trust does not legally bind the grantor.

Trust Requirements in Florida

In order for a trust to be executed correctly in Florida, it must meet the legal requirements of a trust. Those requirements are set out in section 736.0402 of the Florida Statutes:

1. You must have the capacity to create the trust;

2. You must indicate your intent to create a trust;

3. The trust must have a definite beneficiary;

4. The trustee must have duties to perform; and

5. The same person cannot be the sole trustee and sole beneficiary.

In addition, if the trust has any testamentary effect (determining what happens to your stuff after you die), then the trust must meet all the formalities of a will. In other words, it must be (1) signed by the settlor the end of the trust (2) in the presence of two witnesses, (3) who themselves sign that same will (4) in the presence of the settlor and (5) in the presence of each other.

Assuming that all the above requirements are met and the trust is irrevocable, then the trust will be legally binding.

Is a trust legally binding if it is revocable?

No, if the trust is revocable, then the trust is not binding on the grantor of the trust.

If a trust is revocable, then it can be taken back by the grantor (the person who makes the trust). In other words, the grantor can choose to undo the trust. This means that the trust does not bind the grantor. However, after the grantor dies, a revocable trust becomes irrevocable. And at that point, the trust will be legally binding.