Different Types of Trusts in Florida
Trusts are an important part of many estate plans and they can ensure you can manage your property, both during your lifetime and after you pass away. Trusts are legal entities that are created to hold property for the benefit of certain individuals and entities. When you create a trust, you are known as the grantor. You can also act as the trustee during your lifetime and manage the property within the trust. The beneficiaries you designate will receive the property after you pass away. Below, our Tampa trusts lawyer explains the different types you may want to include in your estate plan.
Revocable Trusts
Revocable trusts, also known as living trusts, allow you to transfer property to a trust and act as the initial trustee. Throughout your lifetime, you can manage the property within a trust, and add or remove it as you see fit. After you pass away, the property within the trust will then be transferred to the beneficiaries you designated within the trust. The assets within the trust will not need to go through the probate process.
While a revocable trust can protect your property from the probate process, it will not protect it from creditors. After you pass away, the revocable trust will usually become an irrevocable trust, which means it will be protected from creditors.
Irrevocable Trusts
As the name suggests, irrevocable trusts cannot be revoked or altered once they are created. After assets are transferred to the trust, they cannot be removed, not even by the grantor. Still, these trusts have many benefits. They protect property from being seized by creditors, and can provide asset protection for certain government programs, such as Medicaid.
Special Needs Trusts
A special needs trust is useful when you want to leave property to someone who receives government benefits. Often, these benefits are needs-based, which means the individual’s income and assets are considered when determining if they are eligible for benefits. A special needs trust is a legal tool that can allow a person with special needs to receive assets you want to leave them without affecting their eligibility for government programs.
Charitable Trusts
Charitable trusts are also quite common. These types of trusts allow you to use the funds within it during your lifetime while allocating funds for charitable purposes. Charitable trusts have many benefits. Not only does the charity receive funds or property, but you can also benefit from income tax credits. Additionally, when the trust assets are sold, capital gains taxes do not apply.
Our Trusts Lawyer in Tampa Can Advise On Your Case
Trusts are an important part of many estate plans, but there are many different types and determining which one is right for you is not always easy. At Messina Law Group, P.A., our Tampa trusts lawyer can review your situation with you and help you determine the type that is right for you. Call us today at (813) 492-7798 or chat with us online to schedule a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
