How a Florida Revocable Trust Can Affect Your Legal Standing

In a typical Florida revocable living trust, the same person serves as settlor, trustee, and beneficiary. For example, if you create a living trust and name yourself as trustee, any property you place into the trust remains under your direct control. And as the trust’s beneficiary, you continue to enjoy the benefits of the property during your lifetime.

Florida Court: Trustees Can Always Sue In Their Own Names

Legally speaking, property transferred into a revocable trust is owned by the trustee and not the settlor. This means, for example, that if you needed to take any legal action with respect to your revocable trust, you would do so as trustee. But does that make any practical difference if you are also the trust’s beneficiary?

The Florida Fourth District Court of Appeal recently addressed a case on this point. The underlying dispute, Shriberg v. Florida Flooring, Inc., involved a breach of contract claim. The husband and wife plaintiffs hired the defendant to install a new floor in their home. The plaintiffs alleged the work was defective and thus sued the flooring company to get their money back.

The defendant moved to dismiss the lawsuit, however, alleging the plaintiffs lacked standing. More precisely, the defense argument was that the husband and wife plaintiffs had transferred their home into a revocable living trust. But they failed to file their lawsuit in their capacity as trustees, i.e., the actual legal owners of the house. The trial court accepted the defense’s position and dismissed the case.

The Fourth District reversed and held that the plaintiffs’ lawsuit could proceed. Under Florida law, a trustee may “sue in that person’s own name.” They do not have to allege they are acting in their capacity as trustees. Here, the husband and wife did sue in their own names. The fact they failed to also identify themselves as trustees of their own revocable trust did not defeat their standing to file the lawsuit. Indeed, by placing their house in the revocable trust, all the plaintiffs effectively did was assign their right to sue to themselves in a different capacity. The plaintiffs still held the underlying right to sue.

Revocable Trusts and Liability Protection

One thing to add here is that while assigning your property to a revocable living trust does not affect your ability to take legal action with regard to the trust property, it is also not a legal shield. In other words, if someone sues you individually and obtains a judgment, they can seek to collect against property in your revocable trust. Since the trust itself is revocable and you are the sole beneficiary, a court will continue to treat it as your personal property.

Contact a Davie Trust Litigation Lawyer

If you are involved in any kind of legal dispute involving a Florida revocable trust, it is best to seek out qualified legal advice and representation. Our Davie trust litigation attorneys can review your case and help explain your options. Contact Valero Law today at 305-607-7011 to schedule a free consultation. We serve clients in Davie, Broward County, Coconut Grove and Miami-Dade County.

Source:

flcourts-media.flcourts.gov/content/download/2483360/opinion/Opinion_2025-0162.pdf