Lakeland residents have probably heard that trusts can be great estate planning tools. But, what exactly is a trust? This blog post will provide some basic information about trusts.
A trust can be a useful part of a Florida estate plan. Trusts may sometimes seem intimidating, but they have several beneficial uses, including reducing estate taxes, protecting assets from creditors and the management of estate assets. And, while trusts are normally associated with wealthy individuals, trusts can be a helpful component of any estate plan.
Planning for the future can sometimes seem like a daunting task. One thought that crosses many people's minds is, "how will I take care of loved ones once I am gone?" Trusts can help to ease some of that worry and stress by beginning discussions and making plans for trust administration. The way assets are transferred or managed can have a huge impact on the financial benefit for loved ones.
Many Florida residents are likely aware that planning for the future is essential in the modern world. Whether trying to figure out how to send the kids to college, or how much you'll need for retirement, planning for your financial future can make a huge difference when tomorrow comes. Of course, eventually, we all run out of tomorrows, but planning may be necessary even for that time. This is the area of estate planning, where you determine how you would like to distribute your possessions and assets among those you care about once you gone.
Since adoption and trust administration are governed by Florida state law, every state handles these issues a little differently. One may not initially think that an issue of family law would impact issues in trust administration, but the two have crossed paths in Florida more than once. Recently a FL appeals court handed down a decision concerning adult adoption and its impact on trust administration. This isn't the first time decedents have been impacted by an issue of family law, according to court records.
With Tax Day looming, many Lakeland residents will ask themselves how they save more money. Everyone would prefer to keep their cash in their pocket, so it is wise to look at options to consider how one could avoid giving more of their money to the government in the form of taxes. Trusts have been called a 'tax shelter' thus insulating one's assets from tax implications one may otherwise experience without a trust.
Floridians may find themselves named as the executor of a trust. But, even if this was planned, they may still have questions about just what an executor is their responsibilities.
Of the many different estate planning tools that Florida residents can consider, trusts are becoming a very popular choice. While there is nothing wrong with setting up an estate plan in which a will is the bedrock document, there are some people who find that establishing a trust is a better option. But, as those among our readers who are familiar with previous posts here know, there is a wide variety of trusts to consider. One popular option is known as a "testamentary trust."
Nowadays there are many people in Florida who are realizing that establishing a trust might be a preferable option when it comes to estate planning. Most people know that, for the most part, establishing a trust is a great way to avoid the probate process when it comes to the distribution of assets upon death. There are many different types of trusts to consider, from revocable to irrevocable trusts, as well as charitable trusts and testamentary trusts, just to name a few. However, many of our readers may not realize that just the act of setting up a trust isn't enough to get things done. It is important to take the right steps in the immediate aftermath.
Many Floridians, including residents of Polk County, may choose to create a trust as part of their overall estate plan. Creating a trust naturally involves nominating a trustee to handle the ongoing obligations of trust administration. Unlike the personal representative named under a will, a trustee's obligations can continue for years or even decades.