Types of Trusts In Palm City
If you are looking to set up a plan that could benefit your loved ones financially, creating a Martin County trust could help. While there are many types of trusts in Palm City, contacting an attorney can be the first step toward determining which option may benefit you and your loved ones. However, because of the sheer amount of legal know-how involved in creating a trust, it is best to work with a seasoned legal professional.
Testamentary Trusts in Martin County
A testamentary trust is a trust that is not actually created until after a person’s death. The terms for a testamentary trust are found within a person’s will, which would typically provide that upon that person’s death, certain funds or assets are to go into a trust. This technique is often used for a client with minor children who wants to make sure that their young child does not receive a large sum of money until the child has reached a pre-determined age.
Free Standing Trusts Defined by Law
While there are many types of trusts in Palm City, a free-standing trust is simply the opposite of a testamentary trust. In other words, as soon as the trust document is signed, the trust exists. Its creation does not wait for the grantor’s death in the way that the creation of a testamentary trust does.
Revocable and Irrevocable Trusts in Florida
A (revocable living trust) RLT is a trust that may be amended, canceled, revoked, or changed by the grantor of the trust at any time during that person’s life, so long as the grantor still has the capacity to do so. RLTs are quite common and are exceptionally useful tools for transitioning wealth to the next generation of beneficiaries.
Conversely and as the name implies, an irrevocable trust is a trust that may not be revoked by the grantor. Likewise, the grantor may not directly make changes to the trust. With that being said, depending upon the terms of the trust, there may be some flexibility for an independent party to make changes to the trust, should the need arise. Additionally, Florida allows for “decanting“, which is a mechanism whereby an old trust can be “poured” into a new trust. This is another way of changing the terms of an irrevocable trust. Not all trust terms realistically allow for decanting, though.
Asset Protection Trusts
An asset protection trust (APT) is a trust designed to provide protection for the grantor of the trust from financial threats and creditor claims during that person’s life. APTs may be either of the domestic variety (DAPT) or foreign (FAPT). Many rules apply to the creation of these trusts, though, so caution is in order before establishing such a trust. To better ensure understanding of each, speaking with a Martin County trusts lawyer can be useful.
What Charitable Trusts Are and How They May Help
A charitable trust is a broad term typically used to describe a trust that has been designed with the specific intent of benefiting a charity, either now or in the future. Two common types of charitable trusts are CLTs and CRTs. CLTs provide financial support to charities for a period of time, and then the remaining funds are usually designed to pass to family beneficiaries. CRTs provide a stream of income to the grantor or family beneficiaries for a period of time, and then the remaining funds pass to charity.
Special Needs Trusts
A SNT is a trust designed specifically to allow a beneficiary to receive government disability benefits like social security income, which are often means-tested, in a manner that would not disqualify the beneficiary from the benefits for which they have either already qualified or for which they later become eligible. Because these trusts are exceptionally challenging to navigate, it is critical potential grantors consult an experienced legal attorney.
Bypass Trusts and Their Beneficiaries
A bypass trust usually refers to a trust designed to benefit a spouse and/or children while using all or part of the decedent’s unified credit which excludes assets, up to a threshold (currently $11.4M per person), from estate tax. The types of trusts in Palm city are numerous, but an attorney could help grantors decide if this trust meets their needs.
Speak with a Knowledgeable Legal Professional Today
There are many benefits to creating a trust for your loved ones. However, there are many types of trusts in Palm City and consequentially, many legal nuances that are complicated to people unfamiliar with civil law. Because of this, it is critical you take every step you can to ensure that you proceed properly. One such step involves working with a Martin County trusts lawyer. An attorney can review your desires and determine which trust may fit with your needs. Call today for a confidential consultation.