Is a Trust or Will Better in Florida?
There are many important tools at your disposal when planning your estate. Of all of them, trusts and wills are two that are very commonly used. Choosing to draft a will or trust depends on your goals and circumstances. A will may be all you need if you have a very simple estate. If you are concerned about confidentiality or have complex assets, though, a trust may better serve your needs. Our New Port Richey estate planning lawyer explains more about these two legal tools below.
What Does a Will Do Under Florida Law?
Wills are legal documents that outline how you wish your property to be distributed after you pass away. In order for wills to be valid in Florida, they must be written and signed by the testator who created the will as well as two witnesses. A will allows you to accomplish many tasks. These include:
- Appoint guardians for your minor children
- Name beneficiaries you want to receive your property after you pass away
- Designate a personal representative you want to administer your estate
- Make charitable donations
Although wills can accomplish a number of tasks, they do have limitations. They cannot help your loved ones avoid probate, help you plan for incapacity, or keep the details of your estate confidential. Due to this, wills are often best for estates that are straightforward, and when the timeline, public nature of proceedings, and costs of probate do not create issues for surviving loved ones.
What Does a Trust Do Under Florida Law?
A trust is a separate legal entity created during your lifetime. Revocable trusts are the most common type established and they become irrevocable after you pass away. Once created, you can transfer property into the trust that will be distributed to your beneficiaries according to your wishes upon your death. During your lifetime you typically act as the trustee and can manage the property within the trust. After you pass away or become incapacitated, your successor trustee will take over management and possible distribution of the trust.
Trusts can accomplish many things, including:
- Avoiding probate for any property in the trust
- Maintain confidentiality
- Provide for incapacity planning
- Simplify distributions of property in other states
Like wills, trusts also have their own limitations. They do not offer any tax advantages and during your lifetime, a revocable trust does not protect your property from creditors. A trust also does not name a guardian for your minor children, and you must ensure they are properly funded in order for them to function as intended.
Trusts are often the better option if you have a complex estate such as property ownership in multiple states. A trust can also address privacy concerns, blended family situations, and incapacity planning. However, even when establishing a trust, a will is still typically necessary, particularly if you have minor children and will supplement/support your trust-based estate plan.
Our Estate Planning Attorney in New Port Richey Can Help You Decide
At Messina Law Group, P.A., our New Port Richey estate planning attorney can evaluate your family structure, assets, and concerns regarding incapacitation or privacy to help you determine which estate planning tool is right for you. Call us now at (813) 492-7798 or chat with us online to schedule a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
