There is no single way for you to distribute your assets to your family after you die or become incapacitated. You could have several options available to you, depending on how much wealth you have accumulated and the types of properties you possess. If you want to protect these assets and make sure that your family benefits from them, placing them in a trust could be a great choice.
A trusts lawyer could talk with you in Palmetto Bay about the various ways you could take advantage of this legal option. Our estate planning attorney listens to your wishes to get a clear understanding of what you own and how you want to distribute it.
Many people have heard of trusts through the media, but may not know what they are or how they work. A trust is a legal entity created by you, the grantor, that holds assets for your beneficiary. You can place most types of assets in a trust, such as real estate, bank accounts, and insurance policies. A trustee administers it, who could be you, or you could appoint someone else.
Trusts offer several advantages because they are versatile, allowing us to tailor one to reflect your wishes. Your trustee must follow your instructions regarding the administration of the assets in your trust, which we could document as part of your trust’s terms. For example, your trustee must distribute the assets to the exact beneficiary that you identify.
The greatest benefit, though, is financial. When you die or become incapacitated, your estate enters probate, which is the legal process of dealing with your remaining affairs, such as paying taxes and settling debts. However, assets placed in a trust are not included in the estate, so they do not pass through probate. This could shield your assets from creditors.
Because trusts have different features, trustors in Palmetto Bay should plan the distribution of the estate carefully with the guidance of a knowledgeable lawyer.
Legal counsel could help you determine if a revocable or irrevocable trust is the better option for you, as they have different levels of flexibility and protection.
Revocable trusts, also called living trusts, allow you to retain some control of your assets, as you and your trustees in Palmetto Bay can freely move property in and out of your trust and easily adjust its terms. However, since the assets are still in your possession, they remain subject to creditors and estate taxes, but they are exempt from the probate process.
Conversely, when you create an irrevocable trust, you relinquish your possession and rights over the assets, as the trust becomes the legal owner. This protects your assets from creditors and estate taxes. While these are significant advantages, it is difficult to modify the terms, and you cannot be the only trustee.
Trusts are a great estate planning tool that gives you the ability to protect your assets and ensure they go to their intended beneficiaries. A trusts lawyer at Veliz & Associates could help a person in Palmetto Bay determine if this is a viable option.
It is important that you understand all the possibilities that are open to you when it comes to protecting your estate. Contact Veliz & Associates today, and let us know how we could support you.
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