Establishing a trust is an excellent means of passing down generational wealth while preserving asset value. Trusts can offer numerous benefits in an estate plan, from minimizing stress and uncertainty, to designating specific assets that will be distributed during your lifetime or after your death.
Designating trustees in Coral Gables is one of the key aspects of formulating a trust and whoever takes on this role takes on an enormous responsibility. Trustees have a duty to secure, oversee, manage and distribute assets for the intended beneficiaries. Trustees serve with a duty to be extremely careful in their duties. If beneficiaries determine that the trustee has not carefully complied with the law, they may have a claim against the trustee.
An experienced trusts attorney can help clients select the most suitable trustees for the responsibilities at hand. We can also help with identifying trust assets and ensuring trust administration is followed in accordance with the law.
There are several types of trusts in Florida, including revocable living trusts, irrevocable trusts, and special needs trusts. A revocable living trust allows the grantor (the person who establishes and funds the trust) to change or revoke it at any point after creating it. An irrevocable trust can offer enhanced tax exemptions but cannot be changed or amended after its creation. A special needs trust is designed to enable beneficiaries with special needs to access needed funds without comprising their eligibility for government aid.
All manner of assets can be placed into a trust, including real estate, bonds, stocks, vehicles, art, and various securities. In addition to determining the type of trust, the property and assets to include, and the beneficiaries, it is important to establish a trustee. A grantor in Coral Gables may even decide to act as trustee. In these cases, it is essential to designate a successor trustee to take over the role if the original trustee dies or is incapacitated.
The trustee will manage all trust assets and carry out the directions according to the wishes of the grantor. With the formation of a trust, a trustee can distribute assets according to the directives contained in the trust without additional legal costs or processes like probate. A trustee owes a duty of loyalty to the trust beneficiaries and must be prudent and impartial when managing trust assets.
The trustee should also keep beneficiaries updated about the administration of the trust, financial transactions, and create a faithful record of trust accounting. They will respond to reasonable requests for information from beneficiaries and are empowered to enforce claims on behalf of the trust. This person is legally bound to maintain accurate records of trust property, as well as exercise reasonable skill and caution with administering them.
When it comes to establishing trustees and successor trustees in Coral Gables, there are several considerations to bear in mind. The individual chosen as trustee will need to engage in extensive document management, accounting, and asset distribution. They will also typically manage various forms of property, and file and pay taxes as required.
The grantor of a trust should select a trustee who is responsible and reliable, while also having the appropriate background to carry out their duties. The grantor should consider whether any conflicts of interest exist that could impact the trustee’s ability to live up to the requirements of the role.
An estate planning attorney can assist in carefully designing a trust and structuring the assets, while clearly outlining the terms that the trustee must follow.
It is important to understand that the trustee is bound by a fiduciary duty to carry out the terms of the trust as instructed. They must also manage aspects such as filing estate tax returns and other key legal requirements.
We can design a trust that clearly states the terms and select the right parties to serve in this vital fiduciary role. Veliz & Associates, P.A. can help grantors, trustees, beneficiaries in all aspects of trusts formation and administration. Reach out to us when you are looking to establish a trust with designated trustees in Coral Gables.
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