Put Confidence In Trusts
With trusts, the legal designation of property and funds can combine with tax benefits and the avoidance of probate. That is why, in addition to a will, trusts are an estate planning mainstay.
The Riddell Law Group, with offices in Sarasota, Venice and Lakewood Ranch, can listen to your estate planning needs and concerns to determine what types of trusts would apply to your situation. Property can be easily transferred to beneficiaries through a variety of trust types. Here are three of the most common trust types.
Revocable
Often called a living trust, a revocable trust is a legal solution that is also flexible. This type of trust can be modified, altered or revoked while the establisher of the trust is still alive. It also helps to avoid probate because the assets involved are owned by the trust and not the deceased individual.
Irrevocable
In contrast to the previous type of trust, an irrevocable trust cannot be changed or revoked after its establishment. If you are confident that future conditions will not impact your trust designations, this type of trust may apply to your estate.
Charitable Trust
A charitable trust provides needed funds to a charity of your choice and can lower the amount of estate and gift tax exposure, benefiting both the nonprofit as well as your financial goals. A sub-category of this type of trust is a charitable remainder trust. This type of trust gets funded during the donor’s lifetime and offers financial benefits while benefiting the charity after the donor’s death.
Frequently Asked Questions About Trusts In Florida
At the Riddell Law Group, we are here to provide clear answers and personalized guidance on how these tools can help secure your financial future. Below, our experienced attorneys address some client inquiries regarding the use, function and legal implications of various trust instruments within Florida estate planning.
What types of trusts are commonly used in Florida, and how do they differ?
Florida residents frequently utilize revocable living trusts for flexibility and probate avoidance, and irrevocable trusts for tax mitigation and asset protection. The key difference lies in control: a revocable trust allows the grantor to amend or terminate it, while an irrevocable trust generally cannot be changed after its creation.
How can a revocable living trust help avoid Florida probate?
Upon establishing and properly funding a revocable living trust, legal title to the assets is transferred from the individual to the trust itself. Because the trust, not the deceased individual, owns the property, the assets bypass the formal, often lengthy and costly, judicial process of probate in Florida.
Who should serve as trustee, and what fiduciary duties apply under Florida law?
The trustee is the person or entity responsible for managing the trust assets according to the trust’s terms and the Florida Trust Code. They must act with the highest standard of care, which includes the duty of loyalty and impartiality to all beneficiaries. This requires them to administer the trust in good faith and according to its stated purposes. They must always prioritize the trust’s best interests.
Can a Florida trust protect assets from creditors or long-term care costs?
A self-settled trust, where the grantor is also a beneficiary, generally offers little protection from the grantor’s creditors. However, an appropriately structured and irrevocable trust may be an effective strategy for safeguarding wealth against future long-term care expenses and certain creditor claims, depending on the specifics of the situation.
Contact Us Today
Our attorneys at the Riddell Law Group can answer your questions about trusts and how they may benefit your estate plan. Call us at 941-366-1300 to schedule an appointment or reach us through our contact form.