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Online formSetting up a trust is one of the best ways to ensure your assets are managed and distributed according to your wishes. It helps you make sure your loved ones are protected after you’ve passed away. However, trust and estate planning is more complicated than it appears. Not being thorough when setting up your trust can result in your assets going up for probate.
Understanding trusts and their benefits better is the first step to making sure you follow the right procedure. Below, we look at trusts more closely to teach you their benefits and why you need a Sarasota trust attorney.
A trust is a legally binding agreement that outlines the terms and conditions of how an individual’s assets and properties are managed and distributed after death. Trusts are private agreements that aren’t recorded, filed, or registered. This allows the grantor (the person setting up the trust) to privately distribute their assets as they like. One of the biggest reasons people set up trusts is that they do not want the probate court to decide how their assets are managed.
If you’re on the fence whether you need a trust, here are some benefits you should consider.
The biggest benefit of setting up a trust is it allows you to decide what you want to do with your assets and properties. You can decide the terms of your asset distribution, the beneficiaries, how they’ll receive the assets, etc. Even better, you can select a successor trustee to ensure your trust is managed according to your wishes.
When established according to protocols, most types of trusts bypass the probate process. Probate processes can be lengthy, time-consuming, and costly, so you’ll save your loved ones a lot of inconvenience by setting up a trust.
Certain types of trusts allow you to pass on property to your heirs without paying any gift or estate tax.
Creditors can’t access your assets once you’ve transferred them to a trust. This is because transferring assets to a trust moves them out of your estate.
A trust ensures your loved ones are taken care of when you’re no longer around. It allows you to protect minors, spouses, relatives, and other beneficiaries who are dependent on you.
If you have a family member who is a minor or has special needs, a trust can allow you to decide exactly how your assets are used to manage their care. This ensures the proceeds from your assets aren’t used for other purposes you didn’t intend.
With a trust in place, you can also avoid conservatorship if you get sick or incapacitated. You can select a person you trust to step in and make decisions on your behalf.
If you have a business, you can also outline terms to specify how you want your business to be managed, distributed, who’s in charge, etc.
Depending on your needs and goals, you can choose from a few types of trusts:
Revocable trusts, or living trusts, are trusts that can be revoked even after they’ve been created. The grantor can change these trusts and their assets as long as they’re alive and deemed mentally competent.
The major drawback of these trusts is that creditors can access the assets in them to claim debts.
Irrevocable trusts are the complete opposite of revocable trusts. The grantor typically cannot change these once they’ve been set up and creditors cannot access the grantor’s assets.
Irrevocable trusts are a good choice for anyone trying to avoid probate and estate tax obligations.
A testamentary trust is created as part of the grantor’s last will. The trustor uses it to detail how all or a part of their assets are managed/distributed. A grantor may also assign an executor of the will to oversee its execution. These types of trusts are more common for those who have assets that will be inherited by minor children, relatives, etc.
The main drawback of testamentary trusts is they have to go through probate as they’re part of a will.
Here are other common types of trusts that you might want to discuss with your trust lawyer in Sarasota:
The first step to setting up a trust in Sarasota is getting in touch with a trust attorney, setting an appointment, and preparing by:
Once you’ve considered these aspects, you can meet with your attorney to discuss them. Your trust lawyer in Sarasota will suggest the best options and draw up a trust document for you to review and make changes as needed.
The next step is signing the trust document before a notary public. After establishing the trust, you only need to transfer property into the trust with your attorney’s help.
While Florida law allows you to set up a trust on your own, you’re better off getting help from a Sarasota trust attorney.
For starters, a trust attorney is experienced in the field and they understand the process thoroughly. They will carefully undertake all the necessary activities, ensuring your trust isn’t challenged in court.
Secondly, an attorney can help you plan and execute your trust and its instructions. Your attorney will consider all your goals, concerns, and issues while advising you on the best strategy for establishing trust.
Of course, if you have too many assets or complex instructions to include in the trust document, you will need an attorney’s expertise.
Michael helped a client, the respondent, in their long-term marriage divorce case. Michael minimized his client’s exposure to permanent alimony and temporary support payments.
Michael worked with the respondent in a divorce case. The marriage was of medium length, and Michael was able to limit the support and alimony obligations his client would have to pay. He also helped the client completely retain their retirement accounts.
Read More Results941 Law Help sits down with each client to understand their needs, enabling us to offer tailored recommendations that give our clients the results they were hoping for.
Aside from being well-versed in legal matters, we have the experience to guide you through the tricky process of trust and estate planning. Along the way, we can also help you change your plans or resolve any issues that arise.
Whether it’s asset protection or incapacity planning, there are many reasons to set up a trust. Start taking care of your estate today for peace of mind.
Fill out our online form or call attorney Michael at 941-241-2453 today