Florida does not have an estate tax. With the federal estate tax currently not payable on anything under $11.58 million, you may have forgotten to consider trusts when making your estate plan. These are some of the reasons you may still want to use one:
- Protect it from creditors: Placing money in a trust means it does not technically belong to anyone. So, if you or the people you leave money to end up owing money or being sued, the money in the trust will stay safe.
- Pay your health care: If you become incapacitated and go into care, the trustee will be able to access the money you set aside to pay your bills.
- Avoid probate: This gives your family access to your estate as soon as you die, without them having to waste money going to court to prove the will.
- Keep the money in the family in a divorce: Say you leave money to your daughter. If she divorces, by keeping her money in a trust, you will not be giving a chunk away to her ex-spouse.
- Control spending: Too much money can be a bad thing, especially in one go. Not everyone knows how to control money. A trust allows you to drip-feed funds.
- Pass it down the generations: A trust can allow you to help your grandchildren and future generations, rather than your children inheriting everything and potentially leaving nothing.
However, big or small your wealth, a trust can be a useful estate planning tool.