Trusts Lawyer
While trusts have traditionally been associated with very wealthy people or situations involving unique needs, it turns out that these legal tools can actually be very helpful for families in all circumstances. They can help you avoid problems, delays, and expenses even in ordinary situations.
However, many people get nervous or confused at the prospect of using a trust. So, at the Law Office of Cameron H.P. White, P.A., we take the time to help you understand everything about a trust, from setting it up to managing it in the near and distant future. We can help you determine whether a trust is a good choice for your family, and custom design a trust for your specific goals.
What Trusts Can Do
A trust holds property for someone as a way of protecting that property. The rules regarding how the property is controlled and how it can be used will be different depending on the purpose of the trust. Estate planning attorneys set up trusts to do thing such as:
- Bypass the probate process after the property owner passes away
- Reduce taxes
- Keep property from being taken in a lawsuit
- Manage property for young children
- Help establish eligibility for Medicaid nursing home benefits
- Preserve property for people who have spending problems
- Provide funds for individuals with special needs who receive government benefits
This is actually just a sample of the ways a trust can be used. We would be happy to explain uses that could benefit your particular family.
How a Trust Operates
While people often think of a trust as a type of account, it is more than that. It can be helpful to think of a trust as a type of container. It can hold all types of property, including bank accounts, investments, real estate, and personal property like jewelry or furniture.
A trust can be revocable, meaning that you can change it or cancel it after you set it up. Or trusts can be set up in a way where they cannot easily be changed and you cannot take your property out of the trust. This type of trust is irrevocable, and it provides greater protection for that property.
The person who transfers property into the trust and establishes the trust is referred to in Florida trust law as the settlor, but that person could also be known as the grantor or creator. Once they put property into the trust, it no longer belongs to them but to the trust, and the property is controlled by the trustee.
While the trustee has responsibility for managing the property in the trust, however, the trustee doesn’t get to use the property. Instead, the trustee takes care of the property so the beneficiary can use it. The terms of the trust may require the trust to give money to the beneficiary at regular intervals, like an allowance. Or the terms may specify that the trustee can use trust funds to reimburse the beneficiary for certain expenses, such as college tuition.
When people set up trusts to avoid probate, they serve as their own trustee and beneficiary, so they can continue to use and control their property, but after they pass away, the property goes right to alternate beneficiaries without being held up in court for probate. This saves a lot of time and money for the family. A trust can be customized to do many different things as long as it complies with Florida and federal laws.
Find Out How a Trust Could Help Your Family
If you would like to learn more about the benefits a trust could provide or you need advice or assistance with a trust that is already set up, we would be happy to help. At the Law Office of Cameron H.P. White, P.A., we want to ensure that you have the best plan for the future and you understand how that plan functions.
We take the time to explain your options and help you make choices that are right for your specific situation. To talk to us about trusts or other components of an estate plan, just schedule a consultation.