Is It Possible to Have an Oral Trust Agreement?

A written trust provides clarity, structure, and legal certainty. But what happens when someone claims that a trust was created verbally, without a written agreement?  To learn more about if an oral trust can be valid under Florida law, connect with a Pompano Beach estate litigation lawyer.

Can an Oral Trust Be Valid?

A trust is a legal arrangement where one party (the trustor or settlor) transfers property to another (the trustee) to hold and manage for the benefit of a third party (the beneficiary). For a trust to be valid, certain elements must be present:

• The trustor must clearly intend to create a trust.
• Identifiable property. The trust must include specific, identifiable assets.
• Designated beneficiaries. The individuals or entities meant to benefit from the trust must be named or easily ascertainable.
• A trustee. Someone must be appointed to manage the trust property.

In most situations, especially when dealing with real estate or significant financial assets, a written trust agreement is required to satisfy legal standards and avoid future disputes. Florida courts strongly favor written documentation because it serves as clear evidence of the trust’s terms and intent.

Under Florida law, oral trusts can be valid in limited circumstances but proving their existence is challenging. Generally, oral trusts are only recognized when the subject matter of the trust is personal property, not real estate. For example, if someone verbally tells a family member that they are giving them their car to hold in trust until a younger family member turns 25, that could qualify as an oral trust of personal property.

How Can an Oral Trust Be Proven?

Without written documentation, the burden of proof lies on the person asserting the existence of the trust. Courts may consider witness testimony, financial records, and behavioral evidence.

Because oral trusts depend heavily on interpretation, they may lead to estate litigation. Disagreements can arise over what was said, who was present, and how the property was handled. These disputes can become especially complicated when there are volatile family relationships or large sums of money are involved.

An experienced estate lawyer can investigate the circumstances, gather supporting evidence, and help determine whether a trust claim is legally enforceable. Whether you’re trying to prove the existence of an oral trust or defend against one, professional guidance is essential to protect your interests.

In short, while oral trust agreements are theoretically possible, they’re rarely ideal. A written trust provides the legal standing that oral agreements often lack. Still, when disputes arise, courts can examine evidence to decide if a valid oral trust was created.

If you’re involved in a disagreement about a trust (written or oral) consult with a Pompano Beach estate litigation lawyer. Doing so is a path to clarity, to understand your rights and navigate the complex legal issues that may follow.

Have you recently learned of an oral trust within your family? The estate attorneys at Mark R. Manceri, P.A. are available to answer your questions. Schedule a confidential consultation to learn more.