We have previously touched on various types of trusts in this space, and what some potential advantages of their use may be in the service of a comprehensive Florida Estate plan. This week, we are going to briefly discuss a type of trust instrument that is almost exclusive to Florida. Only two states in the U.S. have created a statutory form of trust called a land trust.
A previous post here discussed the use of trusts as part of a comprehensive estate plan in Florida. We have also touched on some of the different types of trusts, and a few of the basic differences between the two major trusts types: revocable and irrevocable. When people think of trusts they likely are often picturing irrevocable trusts, whether they know the terminology or not. But, it can be just as important to know about revocable trusts and some of the caveats regarding their use as an estate planning tool.
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?
As has been pointed out previously, the use of trusts as a tool for estate planning purposes has been on the rise over the last few decades, both in Florida and the United States as a whole. The flexibility and protection that a properly drafted trust instrument can provide suggests that this popularity is not destined to wane any time soon. This also means that the demand for trustees will likely continue to grow, and the chances that a Florida resident may need to understand his or her rights as a beneficiary under a trust may similarly increase.
When most people think about trusts, they may picture young people sipping drinks on a yacht discussing the amounts their parents allow them to take from their trust funds. While it is possible that some trust beneficiaries fit this image, trusts can be used for a multitude of purposes in Florida.
One of the reasons many trusts are created in the first place is to keep certain assets of the settlor out of court. Avoiding probate court and the time and expense connected with it is a major objective of many trust instruments. This does not mean, however, that courts will never have a place in adjudicating certain aspects of a trust case. So, exactly when can a Florida court get involved in the specifics of a trust that has been created?
We have discussed the use of trusts several times previously in this space, including the reasons that someone might want to include a trust as part of his or her comprehensive estate plan. But, how does one go about creating a trust in Florida? After all, having a trust is only useful if it can be legally enforced. There are a few requirements set out in Florida law with regard to trust creation.
This blog has previously talked about different trust types and the way they can be used as tools to meet certain estate planning goals. This week, let's look at why a trust may be a good idea for some individuals who want to have a bit more control over how their assets are distributed after their deaths.
As the so-called "baby boom" generation continues to age, it is becoming increasingly likely that many individuals will receive an inheritance within the next few decades. A Boston College study has found that it is possible that, over the next 40 years, various beneficiaries will receive as much as $59 trillion through inheritance. Unfortunately, according to a 2012 Ohio State University study, it is a distinct possibility that those heirs will spend, lose or donate about half of their inheritances. With HSBC, a banking company, indicating that the average American inheritance will be about $177,000, there will be a great deal of wealth squandered, both here in Florida and around the country.
People in Florida and around the United States are turning to the use of trusts more and more to satisfy their estate planning needs. While trusts are not just for the very wealthy anymore, anyone considering the use of a trust to ensure his or her wishes are carried through may be confronted with a dizzying array of trust types and uses. This is when a professional's opinion may come in handy.