October 14, 2019
Different Types of Trusts
Trusts are legal tools that can serve many purposes, especially when it comes to asset protection and estate planning. However, there are many types of trusts available, each with its own requirements and benefits. The following is some brief information about different types of trusts that may help with your estate planning goals. Always discuss your specific situation directly with a Florida estate planning lawyer at The Legacy Law Firm.
- Revocable Trust: Often referred to as a “living trust,” this is a trust that you create during your life, and you have the opportunity to modify, amend, or completely revoke the trust when you wish. You will transfer property into the trust, and you can serve as the trustee while you are legally competent. This allows you to manage and access your property freely. You also will designate who will take after as trustee after your death or incapacitation, and you will leave them clear instructions about how to administer the trust. This type of trust can help keep your property and assets out of probate.
- Irrevocable Trust:Unlike a revocable trust, you cannot modify, revoke, or transfer property out of an irrevocable trust when you want. To do so, you will need the permission of your designated beneficiary or beneficiaries. This type of trust removes all ownership of the property transferred to the trust, so it can be helpful to shield assets and property from lawsuits or other risks. This type of trust can also have tax benefits for certain people.
- Special Needs Trust: If you have a child with special needs, you want to ensure they have the financial support they need if something happens to you. However, if they receive an inheritance, those funds may disqualify them from government benefits they need. Federal law allows you to create a special needs trust, which can pay for certain needs of the beneficiary. Such needs can include medical expenses, education, transportation, spending money, insurance, vacations, electronics, movies, other forms of entertainment, clothing and jewelry, and more. By creating this type of trust, parents can rest assured that their adult child will continue to receive government benefits while having their other needs covered by the special needs trust.
- Charitable Trust: A charitable trust is created to both to benefit a specific charity and to save money when it comes to gift and estate taxes. There are different options that you can select when it comes to charitable trusts, including a charitable remainder trust. This can be an important financial planning tool, as well as facilitating charitable giving.
Discuss Your Options with a Florida Estate Planning Attorney Today
Trusts can have many benefits if you select the right one for your situation and create it correctly. You should always discuss the possibility of trust creation with an experienced estate planning lawyer. The Legacy Law Firm handles all types of trusts, and we assist clients in creating the comprehensive estate plan that is right for them. Call 954-999-9683. or contact us online to set up your appointment today.