Most adults in Florida can benefit from the creation of an estate plan. While many believe that a will is sufficient to meet their estate planning needs, this isn’t always the case. For some, a trust will be the more effective tool. This may be especially true for those who want to be protected in the event that they become incapacitated.
The terms included in a will do not become effective until after the creator dies. However, a trust’s terms can take effect as soon as the document is properly executed. Furthermore, the creator of the trust can also be a beneficiary while they are still alive. Therefore, it allows for children or others to benefit in the future while its creator benefits today.
Individuals who are concerned about minimizing taxes may want to use a trust as opposed to a will. This is because the trust can be designed to be ongoing after the original grantor passes on. Although a trust does pay income tax, it may be possible to structure it in a way that keeps those rates close to a person’s personal tax rate. In addition, trusts may be the right choice for anyone who is concerned about keeping details about an estate private.
An individual who is interested in creating a trust as part of their estate plan may want to consult with an attorney. Estate planning and financial professionals may also offer insight into how to structure this type of document. They might also be able to talk more about what type of trust would work best for the estate owner. For instance, someone who wants more control over assets may prefer a revocable trust as opposed to an irrevocable version.