When it comes to estate planning, individuals have several options and many details to consider. One way to transfer assets to beneficiaries or heirs is through a structure called a trust. A trust has certain benefits for Florida residents who are looking into the process of planning how to pass along their accumulated wealth.
A trust holds assets for the trustee. As compared to a will, the trust vehicle can help a family avoid estate taxes, keep the assets out of probate and maintain privacy by keeping information out of the public record. A trust also offers a lot of control for the trustee, who is able to determine exactly under which conditions the funds are disbursed to beneficiaries.
Among the several options for trusts include the marital or "A" trust, the credit shelter trust and the charitable lead trust. Each type has its own rules and benefits. Some are designed more for married couples, others will help a person leave more tax-free funds to a spouse, and another type will enable a person to support a charity and benefit the family at the same time.
Sorting out the specifics of each type of trust, and understanding their exact benefits, can be difficult, especially when compounded by a person's specific preferences and needs. Due to these complicating factors, many people struggle to undertake the process alone. In Florida, some individuals choose to hire an estate planning attorney when undergoing the planning steps for how to floridaelderlaw.net/Probate-Estate-Ancillary-Administrations/Will-Trust-Litigation.shtml">transfer assets to heirs.
Source: bankrate.com, "What Is A Trust?", Jan. 9, 2018