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Basic information about trusts in Lakeland

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 is a right in property held by a trustee for the benefit of another. The trustee has a fiduciary relationship to the beneficiary, meaning that the trustee must manage the trust assets for the benefit of the beneficiary. A person called the settlor gives assets to the trustee in trust for the beneficiary.

Depending on the circumstances, some settlors decide to give assets to trustees during the settlors' lifetimes. In other cases, settlors use their wills to create a trust after their death. If a settlor decides to create a trust during the settlor's life, the settlor has two choices: a revocable or an irrevocable trust.

A revocable trust is a trust that the settlor can revoke during their lifetime. In other words, the settlor can change their mind and pull assets out of the trust. The other option is an irrevocable trust, where the settlor is not able to pull the assets out after the trust is created.

Which trust should a settlor go with? It depends on one's estate planning goals. Certain kinds of trusts work well with certain kinds of settlors. Estate planning attorneys can describe the pros and cons of each kind of trust.

A third option for settlors is a charitable trust. These are used to benefit a particular charitable organization or the public. Often, charitable trusts are great ways for settlors to support worthy causes while reducing their tax liability.

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