Need Help Establishing a Trust in Jacksonville?
Owenby Law, P.A. Is Ready to Guide You Through the Process
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? Jacksonville estate
planning lawyers will often form a trust or multiple trusts to achieve
things that a will cannot. We at Owenby Law, P.A. can help you establish
a trust that reflects your specific wishes.
The Basic Concept of a Trust
While there are many terms associated with trusts (testamentary, living,
revocable, irrevocable, etc.), the basic concept involves the grantor
selecting a third party, either 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 the funds for his personal needs.
The trust is used to meet the child's requirements, such as:
- Medical expenses
Although the concept of a trust is simple, the documentation required to
execute one should be prepared by an experienced attorney who is familiar
with probate and
estate planning. Our firm has more than a decade of experience in establishing trusts
for Florida clients.
What Are the Benefits of Establishing a Trust?
A trust can serve several purposes. For instance, assets that are placed
in a trust will not be subject to probate. By avoiding
probate, your family and loved ones will not have to deal with the process of
petitioning the court to take care of your estate. Also, by not having
to probate an estate, a trust can provide a great deal of privacy as your
estate plan is contained in the trust rather than a will, which would
be subject to probate.
Some additional benefits of having a trust include:
- Upon your passing, a trust can terminate and the remaining trust property
can be distributed per your instruction.
- Generally, a trustee would be responsible for managing the trust property,
but you can designate yourself as trustee.
- Should you become incapacitated, you can name a successor trustee to manage
your financial affairs.
The Difference Between Trusts & Wills
Any property not in a trust can be disposed of in accordance with a will.
The property disposed of by a will must be probated. Probate effectively
transfers title of property from a decedent to a beneficiary, and the
will designates which beneficiary receives what property. If you are unsure
of how you want certain tangible property to be disposed of, a Separate
Writing Memorandum can be completed after your will. However, it is important
to remember that the list prepared in the Separate Writing Memorandum
would not constitute a will or codicil to a will.
What Are the Tax Implications of Trusts?
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. Owenby Law, P.A. can explain the various types of trusts and
their tax implications. In addition, we 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.
Want to learn more about the process of establishing a trust?
Call a Jacksonville estate planning attorney at Owenby Law, P.A.