St. Petersburg Trusts Attorney
In estate planning, trusts are one of the most effective and most flexible tools available. In Florida, people use trusts for a wide variety of reasons. They can be used for Medicaid planning, asset protection, as a way to avoid probate, maintain privacy, and get some tax relief. There are many different types of trusts but they all fall into one of two categories: revocable and irrevocable. Our St. Petersburg trust attorney outlines some of the most common types of trusts used below.
- Charitable Remainder Trust
- Defective Grantor Trust
- Dynasty Trust
- Grantor Retained Annuity Trust
- Grantor Retained Income Trust
- Gun Trusts
- Irrevocable Life Insurance/Crummey Trust
- Qualified Terminable Interest Property Trust
- Revocable Living Trust
Asset Protection Trusts
One of the biggest benefits of trusts is that they can shield assets from creditors. The laws on asset protections are quite nuanced and currently, one of the most complicated legal areas. If a trust is not executed properly, the trust will fail and will not be able to properly protect assets. The Florida Asset Protection Trust provides some of the best protection. This type of trust is irrevocable and shields the assets of the settlor, or the person who created the trust, from creditors. While an asset protection trust is irrevocable, a settlor can still make changes to it during their lifetime.
A type of revocable trust, a living trust allows you, the settlor, to make changes to the trust during your lifetime. You can make as many changes as you would like to a living trust. A living trust, like most trusts, can help your loved ones avoid probate and receive their inheritance much more quickly. A living trust differs from a will because the latter is only effective upon your death. A living trust, on the other hand, allows you to control the timing, manner, and amount of distributions over a certain duration after you pass away.
Spendthrift trusts are designed to protect against a beneficiary who may spend the funds irresponsibly. For example, you may want to leave behind an inheritance to your child who does not know how to properly manage their finances. With a spendthrift trust, the child will have access to the funds but they cannot withdraw from it in any manner they choose. Instead, the trustee will determine how and when to distribute the funds in the trust.
A charitable trust is also an irrevocable trust and can benefit your beneficiaries as well as any charitable organizations you wish to donate to. Charitable trusts also have certain tax benefits associated with them.
Special Needs Trusts
A special needs trust can protect a beneficiary with special needs by ensuring they still receive certain government benefits. For example, if you simply left your child with special needs an inheritance in your will, that may negatively impact the amount of Medicaid benefits they receive. A special needs trust, on the other hand, will mean the inheritance does not count towards the child’s assets, so they can continue to receive full government benefits.
Our Trust Attorney in St. Petersburg Can Further Explain Your Options
Trusts are a great addition to any estate plan, but they must be executed carefully and properly. David Toback is a St. Petersburg trust attorney who can advise on the type of trust that is right for you and create it properly so your wishes are fulfilled. Call us now at 813-252-7529 or contact us online to schedule a consultation.