A trust is a legal entity created to hold assets for the benefit of one or more beneficiaries. If you contemplate adding a trust to your estate plan, you may wonder if there are any situations where you can split or sever your trust if necessary. Under what conditions would a split or severance, if allowed, help achieve your estate planning goals? The legal steps to do so can be complex. Our skilled Palm City trusts lawyer will work with you through the process.
Some trusts are called split interest trusts because they serve two purposes. For example, a charitable remainder trust works as follows:
A grantor might want to create a charitable remainder trust to reduce the worth of his or her taxable estate, to provide a retirement income through the annuity payments, and to give back to the community.
Another type of split interest trust is a charitable lead trust, which works in a somewhat opposite fashion. The trustee distributes a series of payments to charity and then ultimately distributes the remaining trust assets to chosen beneficiaries (typically individuals).
Some trusts in Palm City are created with other benefits in mind.
Married couples may worry about how a surviving spouse will fare upon the other spouse’s death. A couple with a blended family may be concerned about their children’s inheritance being squandered by a surviving spouse. Fortunately, trusts may alleviate some of these concerns.
It is also possible to split or sever your trust for other reasons. However, estate planning tools like trusts are complicated. If mishandled, unintended consequences can be costly.
At Law Offices of John Mangan, P.A., we’ve helped many clients develop comprehensive estate plans that meet their goals and needs. We can set up an appointment for you if you just call 772-218-0480 or use our convenient Contact Form.
Located in Palm City and Stuart, the Law Offices of John Mangan, P.A. also serve clients in Stuart, Hobe Sound, Jupiter, and Port St. Lucie.