The Truth About Trusts: How to Protect Your Assets and Avoid Probate

In this episode of While You Can: Adventures in Life and Legacy Planning, Amanda Reagan, a Florida-based estate and succession planning attorney, breaks down one of the most misunderstood areas of estate planning — trusts. She explains what they are, how they work, and when they make sense as part of a solid estate plan.

Amanda also welcomes tax expert Suzanne Bach, Partner and head of the tax group at Saltmarsh Advisors, to discuss how attorneys, CPAs, and financial advisors can collaborate to help clients build smarter, more tax-efficient estate plans. Together, they highlight how thoughtful planning today prevents costly mistakes tomorrow.

What exactly is a trust and how does it work?

Many people hear about trusts but don’t fully understand what they do or whether they’re necessary. Amanda explains that trusts can be powerful tools, but they aren’t one-size-fits-all. Whether a trust is right for someone depends on their goals, assets, and family situation.

For example, someone with a modest condo and simple bank accounts might not need a trust at all. Instead, they may only need to name beneficiaries and ensure transfer-on-death provisions are in place. But for someone who wants more control — such as providing for a spouse during their lifetime while ensuring assets eventually pass to children from a previous marriage — a trust becomes an essential planning tool.

A trust allows the creator to set rules about how and when assets are distributed. It can protect loved ones, minimize conflict, and ensure the person’s wishes are carried out exactly as intended — both during life and after death.

What’s the difference between a revocable and irrevocable trust?

Amanda explains that every trust involves three main roles: the grantor (the creator), the trustee (the manager), and the beneficiary (the receiver). What makes one trust different from another often comes down to flexibility.

A revocable trust can be changed or canceled during the grantor’s lifetime. This flexibility allows the person to maintain control of their assets and make updates as their circumstances evolve. It’s also one of the most popular tools for avoiding probate, the court process of settling an estate after death.

An irrevocable trust, on the other hand, is more permanent. Once it’s set up, the creator typically can’t modify or revoke it. These trusts can offer strong tax and asset protection benefits but come with more complexity. Because the rules and tax treatment can vary depending on how the trust is structured, Amanda stresses the importance of getting qualified legal and tax advice before setting one up.

How can trusts help you avoid probate?

Avoiding probate is one of the biggest reasons people turn to trusts, especially in Florida. Amanda notes that a revocable living trust can be a powerful way to transfer assets privately and efficiently — but only if it’s done correctly.

A trust that’s not properly funded or maintained is like opening a bank account and never depositing any money. It serves little purpose. Amanda explains that for a trust to work, the creator must take additional steps after forming it, such as transferring assets into it and keeping those records updated. When done right, a trust can save heirs time, stress, and unnecessary court costs.

How should real estate and taxes be handled in a trust?

Real estate is often one of the most complex parts of estate planning. Amanda discusses the different ways to structure property ownership depending on the goals — from simple options like joint ownership between spouses to more advanced structures involving LLCs or irrevocable trusts.

She emphasizes that every approach must balance asset protection, tax efficiency, and legal compliance. Factors such as mortgages, insurance, and property type (homestead vs. investment) all play a role in determining the best plan.

Amanda warns against “one-size-fits-all” advice found online. Instead, she encourages property owners to work closely with professionals who understand Florida’s unique laws, including its strong homestead protections, which safeguard primary residences from certain creditors.

Why is collaboration among attorneys, CPAs, and advisors essential?

In the second half of the episode, Amanda welcomes Suzanne Bach, a CPA and partner at Saltmarsh Advisors, to discuss why collaboration among professionals is essential for effective estate planning.

Suzanne stresses the importance of maintaining a “circle of trust” — a team of advisors who communicate regularly, including attorneys, accountants, and financial advisors. Without that collaboration, clients often end up in stressful situations where important details are lost between professionals, much like a “bad game of telephone.”

She shares that many clients who come to her after losing a spouse or going through a divorce often don’t know what documents exist, what kind of trusts they have, or where to start. Having a coordinated team ensures that all pieces of the plan fit together and that tax, legal, and financial goals stay aligned.

Amanda agrees, adding that collaboration prevents miscommunication, saves time, and keeps clients from being stuck in the middle of conflicting advice. By meeting regularly — even quarterly — with their team of advisors, clients can stay informed, avoid tax surprises, and make confident decisions about their future.

What’s the biggest takeaway about planning with trusts?

Amanda closes the episode by reminding listeners that good estate planning isn’t about reacting to problems — it’s about preventing them. Trusts, when properly structured and managed, can be powerful tools for protecting assets, minimizing taxes, and simplifying transitions for loved ones.

But no plan works in isolation. The best results come when attorneys, CPAs, and financial advisors collaborate closely, ensuring every detail supports the client’s overall goals.

For anyone wondering whether a trust belongs in their estate plan, Amanda encourages taking the time to learn, ask questions, and build a plan that reflects their life, values, and future vision.