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Who Can Use One, and What Happens on the Way Out

Neither spouse need be a Floridian. But take property out of the trust and the character goes with it.

Section 736.1505 opens the Act to nonresidents, declares the property community property under Florida law, and ends the character on distribution.

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Quick Overview

Classification, enforcement, duration, management and control

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Below, we walk through the 4 issues that decide whether this is the right move for you. Jump to any one.

  1. Who may use it Both, one, or neither spouse domiciled in Florida.
  2. The declaration All trust property is community property under Florida law.
  3. No consideration The trust is enforceable without it.
  4. On the way out Distributed property stops being community property.

That’s the quick version. The details below are what decide your situation, and where the costly mistakes hide.

The Act is open to people who do not live here

Whether both, one, or neither is domiciled in the state, settlor spouses may classify any or all of their property as community property by transferring that property to a community property trust and providing in the trust that the property is community property pursuant to this part.

Section 736.1505(1), Florida Statutes.

That opening clause is doing deliberate work. Neither spouse need be a Florida resident. A couple in New York or Ohio can create a Florida community property trust.

What ties the arrangement to Florida is not domicile but the qualified trustee requirement in section 736.1503(2), defined in section 736.1502(6) as a Florida resident individual or a company authorised to act as trustee here. One Florida trustee is the whole connection.

That is the same design instinct visible in Part XIV, where a single Florida trust director can fix a directed trust’s principal place of administration. Both Parts came from the same 2021 act, and both were built to attract trust business rather than merely to serve residents.

Note the two steps in the sentence. Transferring property to the trust is not enough on its own; the trust must also provide that the property is community property pursuant to this part. That matches the express declaration requirement in section 736.1503(1).

What the section declares

All property owned by a community property trust is community property under the laws of the state during the marriage of the settlor spouses.

Section 736.1505(3), Florida Statutes.

This is the operative declaration on which everything else rests, and it is properly limited (under the laws of the state, and during the marriage).

Florida can determine the character of property as a matter of Florida law, and that is exactly what this does. Whether a federal statute then attaches the consequence the couple is hoping for is a separate question, addressed at section 736.1511 and not resolved by any Florida statute.

The temporal limit matters too. During marriage is defined in section 736.1502(5) as ending on dissolution or the death of a spouse, which is why section 736.1507 and section 736.1508 take over at those points.

Subsection (2) adds that the trust is enforceable without consideration. Transfers between spouses are rarely supported by consideration in the contract sense, and this forecloses that attack. It is one of several places where Part XV borrows from marital agreement law, as section 736.1512 does more obviously.

Management is left to the document

Subsection (4) says the right to manage and control the property is determined by the terms of the trust agreement. The statute supplies no default.

Community property systems elsewhere contain detailed rules about which spouse may deal with which asset, often requiring joinder for significant transactions. Florida imports none of that. It is a drafting question, and a couple who do not address it have left a gap the statute will not fill.

The exit, and the trap in it

When property is distributed from a community property trust, the property shall no longer constitute community property within the meaning of this part, provided that community property as classified by a jurisdiction other than the state retains its character as community property to the extent otherwise provided by ss. 732.216-732.228.

Section 736.1505(5), Florida Statutes.

The character does not travel with the asset. Take property out of the trust and it stops being community property under this Part.

That is easy to overlook and it has a practical consequence. A couple who revoke the trust under section 736.1504(3), or who take an asset out to sell or refinance it, have ended its community property character. Whatever the arrangement was meant to achieve, it was achieved only while the property was inside.

The proviso preserves imported property. Community property classified by another jurisdiction keeps its character to the extent Florida’s own provisions on community property rights at death provide. So a couple arriving from a community property state do not lose anything by passing property through a Florida trust and out again.

The asymmetry is worth stating. Florida-created community property character is a creature of the trust and ends with it. Character acquired under another state’s law is older and survives.

A note on the one search result

Our review found no decision construing this section. A search returns exactly one document, and it does not contain the section number.

The document is an Eleventh Circuit criminal appeal from 1993, twenty eight years before this Part existed. The match comes from a citation reading 874 F.2d 1503, followed by a star pagination marker for page 736, followed by the pin cite 1505. The digits 736 and 1505 sit next to each other and the search assembled them into a statute number.

We record it because it is the sixth time we have found this pattern in chapter 736 research, and each time the separator has been different (commas, a square bracket, a line break, and now a star pagination marker). The only reliable way to dispose of such a hit is to open the document and look.

A couple who do not live in Florida

Domicile is not the test. A qualified trustee is.

Frequently Asked Questions

Do we have to live in Florida to create a community property trust?

No. The section says settlor spouses may classify property as community property whether both, one, or neither is domiciled in the state. The Florida connection required is a qualified trustee under section 736.1503(2), not residence.

How is property classified as community property?

By transferring it to a community property trust and providing in the trust that the property is community property pursuant to Part XV. Both steps are required.

Is all the trust property community property?

Yes. All property owned by a community property trust is community property under the laws of the state during the marriage of the settlor spouses.

Does the trust need consideration to be enforceable?

No. A community property trust is enforceable without consideration, which forecloses an argument that a transfer between spouses failed for want of it.

What happens if property is distributed out?

It stops being community property within the meaning of Part XV. The exception is property that was community property under another jurisdiction's law, which retains its character to the extent provided by sections 732.216 through 732.228.

Who manages the property?

Whoever the trust agreement says. The right to manage and control property transferred to a community property trust is determined by the terms of the trust agreement.

Common Situations

Neither of you lives in Florida. You can still use the Act. The trustee is the connection.

You are moving assets out of the trust. They stop being community property under this Part.

You brought community property from another state. That character survives the exit.

You have not addressed management. The statute supplies no default. The agreement must.

Sources of Law


Updated on August 17, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate and tax planning, business structuring, and international law, with a focus on Florida legal tools. He litigates estate and business issues in court. General information about Florida law and published court decisions, not legal advice, and no attorney-client relationship is created. Reading this page does not make us your lawyers. Please do not send confidential details until we have connected.

Talk through whether you can use one

Bring your residence and your asset list. The Florida connection is the trustee.