Welcome to the sunny side of smart estate planning—Jupiter-style. At Welch Law, PLLC in Jupiter, Florida, we hear it all the time: “Eddie, I thought I was doing the right thing by putting everything in my Florida living trust.” And nine times out of ten, that’s the intent. But as your local estate planning strategist (not just a paper pusher with a pen), I’m here to tell you—some assets don’t belong in that trust. In fact, putting them there can be a ticking time bomb for taxes, probate, and yes, even lawsuits.

Let’s unpack this like a Louis Vuitton trunk in a West Palm Beach penthouse.

✅ First: Why Everyone Loves Florida Living Trusts

A Florida revocable living trust is the estate planning golden child. Done right, it lets you:

• Avoid probate (huge in Palm Beach County where court calendars are glacial)

• Maintain privacy (because no one wants their net worth splashed across public records)

• Control when, how, and to whom your assets are distributed

• Plan for incapacity without triggering a court-supervised guardianship

You stay in the driver’s seat while you’re alive—and your hand-picked successor trustee takes the wheel when the time comes.

But here’s the rub: not all assets should ride shotgun in your trust.

The Assets You Should Not Put in a Florida Living Trust

Here’s your Jupiter-certified breakdown of what to leave out—and why.

1. Vehicles (Cars, Boats, Motorcycles)

Thinking of parking that Ferrari Portofino or Harley Fat Boy inside your trust? Don’t.

Why not?

If the vehicle is titled to the trust and ends up involved in an accident, your entire trust—not just that one asset—may become fair game in a lawsuit. Liability magnet, party of one.

Florida Alternative:

Use an assignment of personal property to your trust that transfers your car to your trust upon your death. No probate, no exposure. Simple.

Real Story:

One Ft. Lauderdale family put a boat in their revocable trust. A weekend joyride turned tragic. The trust was named in a lawsuit, dragging the entire estate plan into litigation. Don’t let this be your story.

2. Retirement Accounts (IRAs, 401(k)s, Roths)

Putting these in your trust might feel like responsible adulting. It’s not.

Why not?

Retirement accounts come with built-in beneficiary designations. Tucking them into a trust can trigger unintended taxes, especially if the trust isn’t structured as a see-through (look-through) trust under IRS rules.

Best Practice:

Designate individual beneficiaries—or, when needed, a properly drafted Retirement Trust that preserves the stretch and limits taxation.

Pro Tip:

Got young beneficiaries or concerns about creditors, divorces, or spendthrifts? That’s when we use a Retirement Protector Trust here at Welch Law. It’s like estate planning with a seatbelt and airbags.

3. Annuities

Annuities are like retirement accounts with a twist. They’re contracts—often with death benefits. Putting them in a trust can trigger unnecessary taxes and surrender charges.

Stick to this rule:

If your annuity already names a beneficiary, leave it out of the trust unless we’ve reviewed it together and blessed the move.

4. International Property

Got a villa in Tuscany or a condo in Costa Rica? That’s amore—but don’t jam it into your Florida trust.

Why not?

Foreign property laws vary wildly. Some countries don’t recognize U.S. trusts at all. You could create double probate—or worse, violate foreign ownership laws.

What to do instead:

Work with an estate planning attorney licensed in that country and coordinate the plan. At Welch Law, we’ve got cross-border colleagues on speed dial for precisely this reason.

5. Life Insurance (Unless We’re Getting Fancy)

If your trust is the beneficiary of your life insurance policy, we better have a good reason.

When it’s not a good idea:

For simple estates, the proceeds can go directly to beneficiaries faster and cleaner outside the trust.

When it is a good idea:

When you’re trying to avoid estate tax or build an asset-protected vault. Enter the Irrevocable Life Insurance Trust (ILIT)—a must-have for high-net-worth families in Jupiter, especially post-2026 when the federal estate tax exemption drops dramatically.  There are exceptions when the kids are too young or there are other concerns, such as addiction or divorce.

The Bottom Line: Estate Planning Is Not One-Size-Fits-All

What works for your neighbor might sink your Jupiter estate plan. Your trust is a tool. Use it surgically—not as a catch-all.

Here at Welch Law, we don’t just “draft documents.” We build legacies. We protect dynasties. And we do it with Florida flair, legal muscle, and zero fluff.

Let’s make sure you’re leaving behind a streamlined, tax-smart, probate-free legacy—not a legal landmine.

Ready for a Trust Tune-Up?

We’ll review your current estate plan, flag what doesn’t belong in your trust, and put protections in place that actually work in Florida.

📍 Visit us at Welch Law, PLLC, 641 University Blvd, Suite 108, Jupiter, FL

📞 Call (561) 408-6958

💻 Book your free consultation at www.welch.law

By:  Edward J. Welch, Esq. ||| Estate Planning | Wills | Trusts | Asset Protection | Welch Crypto Trust™

If you would like to discuss your legacy options with an estate planning attorney in Jupiter or Palm Beach Gardens, Florida, schedule a complimentary call with Edward J. Welch at Welch Law, PLLC.  At Welch Law, WE WANT TO DRAFT YOUR LEGACY!

Reference: yahoo! finance (Sep. 11, 2025) “If you want your kids to bypass probate when you die, here are 5 assets to avoid putting in a living trust”