If you have been considering a living trust, you should have a thorough understanding of the purpose of a trust. It would be beneficial to schedule a meeting with a North Fort Myers, Florida attorney who can explain the common uses of living trusts, review your estate, and discuss all of your options so you can make some informed decisions.
The Intricacies of Living Trusts, Irrevocable and Revocable
First, you should know that a trust would be created by you, the grantor, to hold onto property for the benefit of the beneficiaries. The laws that govern trusts are based on Florida statutes as well as common law.
There are typically 2 kinds of living trusts - revocable and irrevocable. The word "living'' is simply an indication that the trust was created while you were alive and well. A testamentary trust, on the other hand, would be created according to the grantor's will upon his or her death.
The 2 types of living trusts are basically self-descriptive. When an irrevocable trust is created, you are irrevocably transferring any property that you choose to the trust. The property is given away and you have no right to take the property back or revoke the trust.
A Few Common Uses for an Irrevocable Trust
The irrevocable trust is commonly used for the following:
- gift planning;
- Medicaid planning;
- estate tax planning; and
- asset protection planning.
An irrevocable trust would also be handy when beneficiaries aren't ready to receive property outright, for example if they are minors. They are also useful in cases in which you may need to protect certain assets from the creditors of a beneficiary.
If you think you or your beneficiaries may benefit from a living trust, contact a North Fort Myers, Florida attorney for help. On the next page, we'll shift our focus to revocable trusts.
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