What happens to our property in the absence of a Living Trust?
Who should handle the creation of my Living Trust?
How is a living trust established in Florida?
A living trust, also referred to as a changeable trust or an intra vivos trust, is a type of ownership in which assets initially owned by the grantor of the trust are lawfully re-titled into the designation of a trustee who handles the assets for the advantage of the trust’s beneficiaries.
The living trust documentation specifies who is entitled to receive a living trust when the grantor passes away. This aspect of the trust is akin to the dispositive provisions of a will (the sections that indicate the distribution of assets). Additionally, the trust designates the successor trustee, who will assume the role if the initial trustee steps down, deceases, or becomes unable to fulfill their duties.
A living trust is established through the execution of a written trust agreement. The trust agreement should be prepared by a legal professional and signed by the individual establishing the trust (referred to as the settlor or grantor). It must be signed with the same legal requirements as a will, typically during the signing of the will with the testator and witnesses.
A living trust is funded by the creator of the trust after it is established. Each of the assets that the creator wants the trust to have must be transferred by the creator to the trustee, in trust. The creator’s legal representative can prepare the transfer documents for the creator to sign to achieve this.
A Living Trust (also referred to as a Revocable Living Trust) has been promoted for years as “The” method to avoid probate. The Living Trust designates a Trustee along with beneficiaries of the trust who receive the advantages and use of the property.
An individual who wishes to ensure that their assets in the trust are utilized for their own well-being and care when they can no longer handle their own affairs. This individual is referred to as the Settlor. The Settlor also serves as their own Trustee until they are unable to manage the trust assets any further. The Trustee is responsible for overseeing the trust assets.
In a meticulously drafted trust, a Successor Trustee receives instructions within the trust regarding how to use the trust assets to care for the Settlor once the Settlor is no longer able to act as their own Trustee.
An individual who owns property in multiple states should establish a Living Trust in order to prevent the need for additional probate processes in those states.
A person who desires to ensure that, after their demise, the trust assets are properly managed for a beneficiary of the trust who is disabled, a minor, has financial liabilities, or has a tendency to overspend.
This is a contract involving three parties: the Creators of the Trust, the Administrators (or Trust Supervisors), and the Beneficiaries of the Trust. For instance, a husband and wife may designate themselves as all three parties to establish their trust, oversee all the assets transferred to the trust, and have complete use and enjoyment of all the trust assets as beneficiaries. Additional “alternate” supervisors can assume control under the provisions of the trust to manage the assets if the couple becomes unable to do so or passes away. Specific clauses in the trust also regulate the administration and allocation of assets to descendants in the event of the creator’s death. With appropriate preparation, the couple can also avoid or eliminate taxes upon their estate. The Amendable Trust for Living enables them to achieve all these objectives without involvement in any legal proceedings.
The creation of your Living Trust should be undertaken by a legal professional specialized in tax and trust law. After all, your trust will serve as the instrument responsible for overseeing and distributing your valuable assets. Ensure you select a reputable law firm that possesses the necessary expertise and proven track record.
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