One of the main reasons to create a solid estate plan is to make the vision you have for your legacy a reality. A key tool in estate planning is often some form of trust. Assets are accumulated in the instrument, and the subsequent distribution of that wealth occurs within the strict rules you lay out as the creator of the trust. In many instances, the trust may have a provision that calls for its termination. But what if the conditions that prompted the creation of the trust change before the anticipated end date?
Pensions are largely a thing of the past. 401(k)s and Social Security are now foundational elements of a solid retirement plan. If you are among those in Florida with significant assets, establishing a trust is another legal tool for protecting wealth and maximizing its value to you and others you might choose.
Trusts have an important role to play in the future financial and estate planning of many people in Florida. A trust fund is one way to set aside and protect a specific group of assets that a person wants to use to support another person. Trust funds can be set up with a range of different beneficiaries, including children, grandchildren, friends or other family members. The trust will be administered by a trustee, which is a person or institution named by the creator of the trust to make decisions about how the funds are used. Choosing the right trustee can be very important in helping to ensure that the assets of the trust are properly maintained.
Most Florida parents and others in the United States want to leave their children and grandchildren enough to live on. However, different people may have different beliefs when it comes to how much is enough for someone to live on. One way to help future generations manage their inheritance is to create a trust. Doing so may allow an individual to place specific parameters on how assets are used and when.
Taxes can eat up a chunk of an estate before any distribution of assets to beneficiaries. Florida residents looking to ensure their beneficiaries receive all or most of the assets left to them will want to consider the many trust vehicles. These have typically been designed for the purposes of protecting the decedent's wishes and protecting the estate from legal challenges. However, each type has certain requirements. A most important need in setting up an irrevocable life insurance trust is ensuring a responsible trustee understands the responsibilities.
There are several steps that a Florida resident must take when administering an estate or a trust. First, he or she should order at least 10 copies of a death certificate, which may be done in coordination with a funeral director. If probate is necessary, an administrator must generally wait until the court appoints that person to be the representative of the estate.
In today's post, we'll conclude our discussion of charitable remainder trusts, which are irrevocable trusts that not only facilitate philanthropic gestures, but also provide a steady income stream and considerable tax savings.
In our previous post, we began discussing how those people who find themselves in the enviable position of being able to give a considerable sum to their favorite charity may want to think twice about simply grabbing their checkbook and instead consider the advantages afforded by the creation of a charitable remainder trust.
Whether we realize it or not, the majority of us have favorite charities to which we prefer to lend our support. Indeed, some of us may make a small annual contribution to a particular animal shelter, school or center for the disadvantaged.
Trustees serve an important role in the life of a trust. They manage trust property and fulfill the wishes of the trust creator (or settler), as outlined in the terms of the trust document.