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Sometimes a simple will is not enough to accomplish the wishes of a testator with regard to his or her estate. For instance, if the parent of a minor child dies before that child reaches adulthood, typically the other parent will assume all responsibility for that child. But what happens if both parents are killed in the same accident and the child is left parentless? Or the parents are divorced and the person making the will doesn't want his or her ex-spouse to have control over the child's inheritance. Estate planning and probate lawyers will often form a trust or multiple trusts to achieve things that a will/testament cannot.
The Basic Concept of a Trust
While there are many terms associated with trusts (testamentary, living, revocable, irrevocable, et cetera), the basic concept involves the grantor selecting a third party (the fiduciary or trustee) to manage funds for a beneficiary. For instance, a parent may select an uncle to manage a child's funds until he or she is old enough to take on the responsibility. The uncle is not able to use it for his personal needs, but rather for the child's requirements as he sees fit (i.e. education, medical expenses, transportation). Although the concept of a trust is simple, the documentation required to execute one should be prepared by an experienced Florida attorney who is familiar with probate and estate planning. Joy N. Owenby, Esquire has a decade of experience in establishing trusts for her Florida clients.
Tax Implications of Trusts
Inheritance and estate taxes can be onerous. In addition to being a useful tool to estate planners, certain types of trusts can be used to legally shelter assets. With a living trust, the principle is transferred to the beneficiary while the grantor is still alive. Because of this, these assets are not taxed in probate. Jacksonville attorney Joy Owenby can explain the various types of trusts and their tax implications. In addition, she can help you determine whether the trust that you establish should be revocable or non-revocable and the tax implications associated with this decision as well.
To schedule an appointment with a reputable and experienced probate and estate planning attorney, contact our Jacksonville office at (904) 359-5115.
Joy N. Owenby serves clients who need representation in all estate planning matters in Jacksonville, Duval County, Clay County, Nassau County, Saint Johns County, Orange Park, St Augustine, Middleburg, and all areas of northeast Florida.