Some people in Florida may want to consider creating a trust as part of their estate plan. A trust can be a good way to protect assets, but people should also be aware that trusts come to an end as well. It is important to plan how this will happen to ensure that the purpose of the trust is fulfilled.
Florida residents usually put estate plans into place to reduce their tax burdens and ensure that their assets are passed to their loved ones in accordance with their wishes. This is generally done by using wills. Wills must go through the long and sometimes costly probate process before property can be distributed, but this step may be avoided by placing assets into trusts or using beneficiary designations.
Florida residents may create trusts for a variety of reasons. For instance, they may do so in an effort to protect assets or minimize an estate tax bill. While a trust may exist in perpetuity, there are ways in which such a document may terminate. For instance, the creator of the trust could specify that it expires on a certain date in the future. The trust could also expire if the money or other assets inside of it have been fully distributed.
When planning your estate, you will probably conclude that probate is an inefficient process that is costly and time-consuming. Probate means that your beneficiaries will inherit a lower portion of your estate due to the costs involved. Understandably, many estate planners are curious about what they can do to avoid probate.
When estate owners in Florida, or anywhere else in the country, create a trust, they typically do so because they want to ensure that their money is managed and distributed in a particular way. In some cases, this is because the trust creator wants to encourage a beneficiary or beneficiaries to complete certain goals before receiving trust money. Other times, the beneficiary of a trust may have difficulty making good decisions about money and other life choices, so a trustee is necessary to ensure that the funds are spent responsibly.
Politics can have an impact on the type of estate planning techniques that individuals in Florida and elsewhere use. However, individuals are urged to not let potential changes to estate tax laws completely dictate their decision-making process. For instance, it may not be a good idea to wait until after the 2020 election to see what a new president could do to gift and estate tax exemption limits. Both the gift and estate tax exemptions are currently set at $11.4 million.
Blended families, unmarried couples and other nontraditional family arrangements can cause additional complications when it comes to estate planning. Florida families who do not follow the traditional structure of a mother, a father and their children may want to consider a trust as well as some additional provisions to address these complexities.
Florida residents like you who have decided you want to leave some or all of your assets to charity will need to learn more about the means by which you can do so. We at the Law Offices of Frye & Vazquez, P.L., are here today to discuss exactly that.
One way to provide support for a person with special needs is by creating a special needs trust. Receiving funds from this kind of trust does not work against a person with special needs when applying for government benefits. This works by getting an exemption for the trust. Florida residents might like to know more about using a special needs trust.
As a Florida resident who is figuring out how you want your estate distributed, you may also be looking into the possibility of setting up trusts. Today, the Law Offices of Frye & Vazquez, P.L., will discuss the option of setting up a charitable trust.