This blog has covered several issues in the past regarding the creation and maintenance of trusts as part of a comprehensive estate plan. The use of trusts as a tool to avoid probate, or to protect assets from creditors or the poor spending habits of beneficiaries have all been topics of prior posts on this blog. But there are quite a few different categories of trusts that can be created, and they can have many different purposes. So how does one know which type to choose?
The two basic categories of trusts in Florida, as we have seen, are revocable and irrevocable. To review, revocable trusts remain in the control of the grantor during his or her lifetime, while irrevocable ones do not. There are differences between these two general categories with regard to whether they avoid probate and other specific legal matters. There are also two basic "triggers" for the creation of trusts. "inter-vivos" or "living" trusts are created during the grantor's lifetime, usually upon the valid execution of the trust documents. "Testamentary" trusts, on the other hand are created by a testator's will, and are not considered to exist until after the grantor's death. Then of course, there are trusts created for specific purposes, such as charitable trusts, life-insurance trusts, honorary trusts, and others.
So, how does any given person determine what kind of trust is appropriate for them? This is going to depend almost entirely on the specific circumstances of the person's case. What kind of assets are involved, who the beneficiaries are going to be, and what the most important purpose of the trust is to the grantor are all factors that can affect this decision.
The Law Office of Warren B. Brams has handled the myriad different types of trusts for many different types of people with varied interests. Our firm, therefore, is well-versed in how the estate laws work, and how to accomplish a client's goals. If you have questions about the types of trusts, or other estate planning matters, visit our wills and trusts webpage for more information.