Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Are people too dismissive of the idea of executing a trust?

One of the more common questions to arise in the context of estate planning is whether a person really needs to consider executing a trust. While some of this inherent doubt can, of course, be attributed to the longstanding misconception that trusts are somehow reserved for the very wealthy, some of it can also be attributed to the reality that most assets can be passed on via a simple will and beneficiary designations.

While it's true that a person can accomplish many of their estate planning objectives via these mechanisms, it's also true that a trust can do the exact same thing while also avoiding probate and minimizing taxes.

In today's post, we'll explore other reasons why someone who doesn't consider themselves to be incredibly wealthy may nevertheless want to consider executing a trust for the benefit of their family.

How exactly would executing a trust benefit a family?

The real value of a trust is that it allows the trust creator -- otherwise known as the trustor -- to establish very specific instructions concerning how trust assets are to be distributed.

For instance, the trust could direct the trustee to distribute a set amount of money in set intervals to a spouse about whose spending habits the trustor has long found suspect. Similarly, it could dictate that an older grandchild receive a larger share of their bequest than their younger counterparts at the outset in light of their presumed financial maturity.

Are there any other ways in which a trust can protect family?

Absolutely. Trusts become especially valuable if the trustor has remarried and has children from the first marriage. Specifically, executing a trust can help ensure that assets initially pass to the surviving spouse from the subsequent marriage, but then revert to the children from the first marriage. Essentially, it prevents those scenarios where the assets end up going to the surviving spouse's children rather than the children from the first marriage.

Can a trust benefit a family in a way that is not necessarily protective or otherwise restrictive?

One of the often overlooked advantages of executing a trust is the flexibility it grants relating to its terms. For example, it could contain a sort of incentive provision that awards grandchildren a set sum upon completion of an advanced degree or encourages philanthropy by agreeing to match certain charitable donations.

What the forgoing serves to demonstrate is that those considering the execution of a comprehensive estate plan should remain open to any and all options, especially trusts.

To learn more about trusts or other estate planning options, consider speaking with an experienced legal professional as soon as possible.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Aventura, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions