One of primary tools in an Estate plan is a Trust. There are variety of different types of Trusts but the basic concepts remain the same. Florida Trusts are governed by Florida’s Trust Code Chapter 736 but Trusts nationwide follow the same basic patterns.
What is a Florida Trust?
A trust is an instrument designed to hold assets based on a stated plan called a Trust Agreement. This works using several key roles.
The Parties/Roles in a Florida Trust:
Grantor/Settlor/Trust maker: This is the person or person(s) that put assets into the Trust and design the provisions of the Trust.
Trustee: This is the person that takes legal ownership of Trust assets pursuant to the Trust Agreement and is legally obligated to follow the terms of the Trust Agreement and the provisions of Florida’s Trust Code. These responsibilities include duties to the beneficiaries to administer the estate pursuant to the terms of the Trust agreement. This includes things like investments, making payment to the beneficiaries, completing the necessary tax returns of the Trust and making distribution of the Trust assets.
Beneficiary: The beneficiaries of a Trust are those individuals entitled to receive assets from the Trust and from the Trustee. They are entitled to transparency regarding the administration of the Trust, accounting and can enforce their rights under the Trust agreement by holding the Trustee accountable in a Court of law in Florida if necessary. Beneficiaries are entitled to annual accountings, information regarding trust administration.
WHY WOULD YOU CREATE A TRUST FOR ESTATE PLANNING IN FLORIDA? REVOCABLE LIVING TRUSTS
There are several advantages of a Revocable Living Trust when it comes to Estate planning.
SO SHOULD I CREATE A FLORIDA TRUST?
Ultimately the decision on whether to create a Trust as part of your Estate plan is something that is dependent upon your specific circumstances. This is a decision that should be made only after speaking with experienced counsel. Give our office a call to discuss your specific situation, we offer no obligation free consultations.