Is it Time to Establish a Trust?
Estate planning in Florida requires you to draft many different types of documents to protect you, your loved ones, and your property. For many people, drafting an estate plan means simply creating a will. However, there is much more to comprehensive estate planning than just a will. Although a will allows you to distribute your property according to your preferences instead of state law, name a personal representative for your estate, as well as a legal guardian for minor children, these documents are not usually enough to offer the protection you and your family need.
Trusts are another type of estate planning document that can provide a great deal of protection but they are often misunderstood. Below, our Tampa trusts lawyer explains more about these documents and tips to consider if you think they are right for you.
What is a Trust?
Trusts are legal documents that hold property. After executing a trust, you then fund it with property you want to distribute to others after you pass away. Funding the trust simply refers to changing the title on property to establish another entity as the legal owner of it.
In a revocable trust, you can act as the trustee during your lifetime, managing and controlling the assets within the trust. You can also designate a successor trustee who will manage the trust, and the property within it, after you pass away or become incapacitated. The successor trustee has a legal duty to act in your best interests.
The biggest benefit of trusts is that you can leave property for your loved ones after you pass away and it is not subject to probate. This can allow your heirs to obtain their inheritance sooner and in full, as it is not considered part of your estate and therefore, not open to creditor claims and judgments.
When is it Time to Establish a Trust?
Like all other aspects of estate planning, deciding whether to establish a trust is a very personal decision. While there is no one ‘right time’ to create a trust, there are situations when you may want to consider it. These include:
- You want to ensure your minor children are properly supported in the event anything happens to you
- You want to set conditions on an inheritance to prevent your heirs from wasting it
- You want to protect your business interests or property from possible lawsuits and judgments
- You will likely need long-term care, such as a nursing home facility, and want to shield your property from Medicaid’s look-back period
It is important to remember that when establishing a trust, you can still benefit from the property within it and change the terms at any time, in most cases.
Our Trusts Lawyer in Tampa Can Create Your Plan
If you need to establish a trust or draft any other estate planning documents, it is important to first obtain legal help. At Messina Law Group, P.A., our Tampa trusts lawyer can review your goals with you to determine which estate planning tools you need and execute them properly to ensure you and your family are protected. Call us now at (813) 492-7798 or contact us online to request 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
