For some people, creating an estate plan is a seemingly simple task. They create a will and take care of end-of-life decisions and then call it a day. That, however, might leave a good estate planning tool untouched. That estate planning tool is the trust. Traditionally, trusts have been a way for people to help remove estate taxes that are going to be transferred to family members, but there are other benefits to this estate planning tool.
Setting up an irrevocable trust enables you to set specific terms for how the assets in the trust can be used. A revocable trust, on the other hand, lets you use your assets while enabling your heirs to quickly settle your estate when you are gone. Other trusts, such as the disclaimer trust, qualified personal residence trust, and qualified terminable interest property trust, are lesser used trusts that can meet your needs if you have unique circumstances like a blended family.
Trusts allow you to protect your legacy by ensuring that it is protected from the creditors of your heirs. When you are building a trust, it is important that the trust is properly executed. Naming a trustee over the trust is one of the biggest decisions you will have to make when you are creating the trust.
Anyone who has considerable assets might benefit from setting up trusts to handle the distribution of assets when they are gone. Learning about the different types of trusts and creating an estate plan that is legal according to Florida law is vital to ensure your final wishes for your assets are followed.
Source: Forbes, "How The Right Trust Could Protect Your Assets And Cut Your Tax Bill" No author given, Apr. 10, 2014