The components of an effective trust can differ from trust to trust, depending on the client’s needs. One of our main concerns is making sure our loved ones are taken care of after we’re gone. This is especially true if we’re dealing with minor children or children who haven’t gotten to college age yet. We want to make sure that they’re taken care of without the assets of the trust being wasted; we want to make sure that we have specific distribution ages for our younger beneficiaries.
- What Components Constitute An Effective Trust In Florida?
- How Does An Irrevocable Trust Differ From A Revocable Trust?
Can I Use A Trust To Avoid Probate Completely?
Creating a trust is not a guarantee that you will be able to avoid probate. However, these common types of trust can be very valuable when used as advised by your Sarasota trust attorney:
- Revocable Living Trust: A revocable living trust is typically created to avoid the probate process. It ensures that your assets go to the intended recipients without the probate process, after your death. Many times, a revocable living trust will contain sub-trusts within. This is a good place to start when discussing a trust with your trust attorney in Florida.
- Grantor Trust: A grantor trust is a trust created to transfer property to a person or a business entity in order to avoid probate, taxes, and other complications.
- Irrevocable Living Trust: An irrevocable living trust is a contract created with the supervision of your Sarasota, FL trust attorney to transfer assets to an individual that the trust creator claims is not competent enough to manage assets. The irrevocable aspect of the trust can be limited to only specific portions of the trust and other parts can be changed.
- Testamentary Trust: A testamentary trust is created by the instructions inside of a will of a deceased person. This is a type of irrevocable trust, which is used to leave assets to a certain beneficiary at a certain time after the grantor’s death. This type of trust does not avoid probate and instead, needs probate to take effect.
- Minor’s Trust: A minor’s trust passes assets on to a minor child and plans for the management of those assets until that child reaches a specified age, at which point they are given full control of those assets. This type of trust can avoid a guardianship proceeding. A minor trust holds all the assets for the minor and the grantor receives no income from the trust’s assets. It is very important to follow your trust attorney’s guidance when planning for your minor children in Sarasota, FL.
- Beneficiary Trust, Separate Share Trust, or Spendthrift Trust: These trusts allow trustees to manage the assets you put into a trust for the welfare of a beneficiary. A separate share trust allows parents to create a trust that accommodates the unique needs of each of their children. A spendthrift trust protects the trust’s assets from creditors and allows the assets in the trust to be managed by an independent trustee.
- Blind Trust: A blind trust allows a trustee to handle the assets in the trust without any knowledge or permission of the beneficiaries. In scenarios where the beneficiary needs to be kept unaware of the contents of the trust to avoid conflicts, a blind trust is rather useful. The advice of a trusted trust attorney is necessary, if you find yourself considering a blind trust in Sarasota.
- Discretionary Trust: In a discretionary trust, the beneficiaries and the assets are not fixed. They can be determined by certain criteria and administered at the discretion of the trustee.
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