Who In Florida Needs A Trust?
In my opinion, anybody who owns real property in Florida needs a revocable trust of some kind. With that being said, there are many attorneys who probably disagree. There are other instruments to pass property outside of probate, but a revocable trust gives you a lot of benefits in terms of privacy. It is probably better to ask “who doesn’t need a trust?” My answer: anybody with a very low number of assets, or assets that are scheduled to pay for accounts upon their owner’s death.
Many owners of small businesses or family businesses incorrectly believe that they don’t need a trust because they already have a will. What these owners fail to consider is that, through probate court, the distribution of assets may take a very long time, leaving their family or business in a stressful time period. This may cause a high level of stress and a disruption in business practice. But, this can be avoided with the establishment of a trust.
What Are The Different Types of Trusts?
There are many different types of trust. One of the most basic types is a revocable living trust, in which the owner of the trust has the ability to make any changes they wish to the trust throughout their life. This type of trust can also be held by two people in the form of a couple or non-traditional couple. When the grantor of a revocable trust passes away, the trust becomes irrevocable, and cannot be changed anymore. Most trusts in the United States are revocable living trusts or an irrevocable trust that formed out of a revocable trust. There are certain times we may want to set up irrevocable trusts from the start, such as in the case of generation-skipping transfer trusts.
Some clients may want to set up a charitable trust of some sort, such as a foundation trust or charitable remainder trust. Charitable remainder trusts are typically used by wealthier individuals to capture some immediate tax savings while passing on a large portion of their wealth to charity after they pass away. Depending on the type of charitable trust used, you can either maintain your ability to use that income while you’re alive or have that income go directly into a charity.
There are trusts that are set up for children, designed with spendthrift provisions. If an individual wants to set up a trust for their child and doesn’t want creditors to be able to access it, they may do that through a spendthrift trust. There are also special needs trusts that can be set up for beneficiaries.
A special needs trust protects the beneficiary from the ability to access the money. This type of trust is particularly meant for beneficiaries with a drug, alcohol, or medical problem and those qualifying for government benefits. A special needs trust allows the trustee to have absolute and total discretion over the disbursement of those funds to the beneficiary, and therefore it allows you to not jeopardize that person’s potential government benefits. A special needs trust allows for a trustee to be selected to manage the funds for the beneficiary’s benefit, who will have the power to use that money for their health and welfare.
All of these types of trust may be set up in these ways from the beginning or scheduled to evolve out of a revocable trust after someone passes away.
For more information on Need For Trusts In the State Of Florida, a free consultation is your next best step. Get the information and legal answers you are seeking by calling (954) 546-7755 today.
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