A trust is a legal document that can make a significant impact for you, and your family, in how your assets are managed. There are many different types of trust, each with different rules and purposes. The most common type of trust is the revocable living trust, often referred to as simply a “living trust”, which is a type of trust that focuses on managing your assets when you are unable to do so yourself. A revocable living trust can protect and preserve your privacy, avoid probate, and determines who will handle your affairs while you are incapacitated and after you have passed away. Incorporating a revocable living trust into your comprehensive estate plan can provide an extra layer of protection to your estate and gives you the peace of mind that your intentions will be honored without conflict and court intervention.
Clarify Your Goals and Desires
Prior to creating your revocable living trust, it is essential to consider your personal estate planning goals and objectives. What is most important to you? If privacy is most important, then a trust can help you maintain privacy by keeping your financial matters out of court and away from public records. A properly crafted trust also allows your family to administer your estate more quickly, bypassing lengthy probate proceedings, which can otherwise take months or years to resolve. Clearly defining your priorities enable your attorney to draft a trust that is tailored to your unique needs.
Choose the Assets That Will Go Into Your Trust
The process of putting assets into your trust is called “funding”. The funding process varies depending on the types of assets you own and your desires for how the asset should be transferred to your loved ones. . Most people put their house in a living trust, along with other financial accounts such as solely-held savings and checking accounts, to prevent them from going through probate. . Retirement accounts and insurance policies are also often included, especially when minor children or loved ones with special needs are involved. Naming the trust as a beneficiary of these accounts can facilitate a smoother transition of assets. This approach allows your assets to be transferred directly to the trust, avoiding potential complications and delays that may arise when dealing with each financial institution separately. By streamlining the process, you can help your loved ones avoid unnecessary emotional stress and financial burdens, which are often heightened during times of grief.
Appointing a Successor Trustee
Your successor trustee will be responsible for managing your affairs if you become incapacitated and administering your estate after your death. You may elect to appoint a person, or a professional trust company, who may also oversee property or assets in your trust left to minors or individuals with special needs. Careful selection of your successor trustee is crucial, as they will be tasked with carrying out your wishes and managing your estate responsibly.
Designate Your Beneficiaries
You have complete control over who is named as a beneficiary in your living trust. This decision is personal and should reflect your wishes for your legacy. If you choose to exclude someone who may expect an inheritance, consider including an explanation in your trust, or a letter, explaining your decision, or discussing it with them in advance to avoid confusion or disputes later..
Work with an Experienced Florida Trust Attorney to Draft Your Trust
Drafting a trust on your own can lead to errors and may not withstand legal scrutiny. It is important to seek the assistance of an experienced Florida attorney to draft your trust to ensure your trust is properly prepared and your desires are legally enforceable. Professional guidance is second to none and provides reassurance that your trust is correctly established and your intentions will be respected.
If you have questions about setting up a trust or would like your existing living trust reviewed, please contact us to schedule an appointment.
