Once a person has climbed the mountain of accruing wealth, they usually desire a way to share that wealth with family. A person who has retired and is debt free will likely be thinking about estate planning. Not every person will have confidence in a child's preparedness to receive a large sum of cash, nor will every child's circumstances be ideal for an infusion of cash. For individuals in Florida, a trust is a possible route for ensuring the longevity of the inheritance gift.
Inevitably, every person is unique, and each possible heir to an estate will have a particular approach toward saving, spending, earning and budgeting. The person who will be giving the gift may desire that the inheritance be applied in a certain way. In circumstances where a significant amount of wealth is involved, even if the amount is under the federal estate tax exemption, some financial advisers recommend the use of a trust.
The administrator can be a family member, such as the most fiscally responsible sibling. Another option is to use a third party administrator. The trust can be structured so that it is invested in securities that provide a reliable income for individuals. The payments can be given annually, quarterly or monthly depending on the needs of the individual.
Parents who love their children, and who have doubts about their ability to handle a large inheritance, may decide to use a trust. The reasons a person may not be prepared for a lump sum are many, and it is possible that a measured payout would actually enable the person to thrive. In Florida, individuals beginning the estate planning process often choose the help of an attorney when deciding to create a floridaelderlaw.net/Probate-Estate-Ancillary-Administrations/Will-Trust-Litigation.shtml">trust.
Source: theledger.com, "Arbor Outlook: Consider income trusts when planning your estate", Margaret R. McDowell, Nov. 15, 2017