Prior posts on this blog have described some of the benefits of creating a trust. For example, one of the primary reasons why a person in Florida sets up a trust is so that his or her heirs will be able to avoid the cost and time that it takes for a decedent's estate to get settled through the probate process. Furthermore, trusts can provide certain tax benefits when it comes to transferring assets from one person to another.
When a loved one dies, the remaining family is often left to deal with the person's estate. The estate can include a variety of assets including a person's personal property, real estate and investments. It will also include any income and any debt a person had. In some cases, people leave an estate plan in order to explain how the estate should be distributed. The distribution of assets can also occur according to state laws if no estate plan was left.
A common concern for people in Florida is trust administration after they pass away. For people with a vast portfolio, the distribution of assets can be a major worry. Various strategies are used to try and have a handle on how the beneficiaries will receive their pieces of the estate. Using a tactic known as an incentive trust is something that is worthy of consideration if there is the possibility of disputes between the heirs and trustees.
Many Florida residents like to feel like they are in control of their lives-and their money. For many people, this desire extends beyond their deaths. Having worked to accumulate money and assets over a lifetime, they want to make sure that it is distributed in the way they intended. Planning for careful estate administration can help achieve these goals and facilitate the process.
For people in Lakeland, there is often a question as to whether a revocable trust or irrevocable trust is preferable when planning for the future. It's one of the most common considerations when considering trust administration and there are numerous aspects to each that must be understood before a decision is made. Depending on the individual circumstances, both have advantages and disadvantages.