A well-built trust can keep assets out of probate, ensure a person has access to long-term care, protect a vulnerable loved one, and shield assets from creditors. They are a valuable tool for many families and can be a great help to you when you are thinking about your future.
Contact a Coral Gables trusts lawyer to discuss whether this tool might benefit your family. Our local estate planning attorney could listen to your concerns, assess your needs, and help you develop a plan that provides clarity and comfort.
A trust is a legal entity that holds property for the benefit of someone else. The property could be real estate, life insurance policies, bank or brokerage accounts, or anything of value. A person known as a grantor or settlor transfers their property into the trust. A trustee manages and protects the property until it must be distributed to the beneficiaries.
When someone dies, the property they own in their name is part of their estate. It is subject to estate tax, reachable by creditors, and must go through the probate process before it can be distributed to the heirs. A trust can be set up so that when a settlor dies, the property they put in a trust does not count as estate property and will not need to go through probate.
There are different types of trusts that accomplish different purposes. Many trusts call for the distribution of the trust assets upon the settlor’s death, but sometimes trusts continue after the settlor’s death and pay out only a portion of their holdings to the beneficiaries over time. It is critical for anyone setting up a trust to have a candid discussion with a Coral Gables attorney to determine the type of trust that best suits their needs.
The protections and flexibility a trust offers depend on whether it is revocable or irrevocable.
A revocable trust allows the settlor to maintain control of the assets in the trust. The settlor can name themselves as the trustee, with a co-trustee or successor trustee who will assume control of the assets if the settlor/trustee dies or becomes incapacitated. According to Florida Statute § 736.0602, a revocable trust allows the settlor/trustee to move property in and out of the trust at will and easily modify its terms.
Because the settlor retains control of the property, it is not protected from the settlor’s creditors. The value of the property counts as part of the settlor’s estate for estate tax purposes. However, the property does not need to go through probate and the beneficiaries could receive distribution of the property upon the death of the settlor, or the property could be kept in trust for the beneficiaries during their lifetime.
When a settlor puts property into an irrevocable trust, they lose the right to control it. They must title the property in the name of the trust, and the trustee has the sole right and obligation to manage it for the beneficiaries. The settlor cannot be the sole trustee of an irrevocable trust.
Creditors have no rights against the property placed in an irrevocable trust. The value of the property does not count toward the value of the estate and is not subject to estate tax. Property in an irrevocable trust does not go through probate and the beneficiaries may have access to it during the settlor’s life or upon the settlor’s death.
Developmental disabilities, accidents, and age-related health issues can leave a person requiring in-home care or long-term care in a residential facility. Very few families can afford the expense of this care out-of-pocket. A skilled Coral Gables attorney could create a trust that works for a particular person’s assets and wealth.
People who have developmental disabilities or injuries due to an accident often qualify for state and federally-supported programs that provide housing, a living allowance, and sometimes other services. Parents or others who wish to leave money to a disabled person to provide a better quality of life can fund a supplemental needs trust that preserves the child’s eligibility for public benefits. A disabled person could even establish a trust for themselves using a personal injury lawsuit award or inheritance.
Trusts offer many advantages. There are various forms of trust, and one of them may be the vehicle you need to help accomplish almost any financial goal.
Speak with a Coral Gables attorney about how a trust could help you and your family. Reach out to Veliz & Associates, P.A. today to get started.
We evaluate your case and determine how we might be able to help.
We will meet with you to discuss your next options and lay out a plan.
Our team guides you throughout the process so you feel confident about your choices.
(305) 250-9917