Estate planners in Florida often utilize trusts to protect wealth, save money on taxes and help their beneficiaries avoid probate court. After a person has established a trust, they can create another without revoking the first. This is one of several things that distinguishes a trust from a will.
Most wills state that the creation of the new will is intended to revoke any prior wills. If the person creating a second trust intends for it to replace a prior trust, the trust document can be drafted to say that it is a complete amendment and replacement of the first trust.
Having two trusts to distribute property separately is usually not necessary. Most of the goals that could be accomplished by having two trusts can be accomplished by adding language to a trust that already exists. However, there are some important exceptions when having two trusts would make sense. For example, it was once a common practice to establish an inter vivos trust for life insurance policies to separate the policy’s assets from an estate holder’s taxable assets.
An estate planning attorney may be able to help someone who wants to protect their assets. There are many different types of trusts available. The type of trust utilized will depend on the amount and type of assets the person owns. Many trusts enable a person to use property or receive income from it during their lifetime. Many people choose to use a trust rather than a will because of benefits that can be enjoyed during the grantor’s lifetime. In addition, the beneficiaries can receive property automatically upon the grantor’s death without going to probate court.