The trustee will take control of the trust after you pass away. They have a legal duty to follow the instructions within the trust and distribute the property accordingly. Choosing your trustee is one of the most important steps when establishing a trust. Below, our St. Petersburg trust planning attorney provides some tips to follow.

Important Considerations when Choosing a Trustee 

There are many important factors to consider when choosing a trustee. Although you can choose any trustee that is at least 18 years old, there are some characteristics your trustee should have. These include:

• Trustworthiness: Your trustee will have access to any property you placed in the trust and they will have little oversight. If you have any questions about a person’s trustworthiness, it may be best to appoint another person as trustee.
• Financial intelligence: Your trustee does not have to be a financial expert. However, they should have a basic understanding of finances, be able to make good financial decisions, and know how to manage a budget.
• Commitment to the trust: No one wants to think about it but trustees sometimes face pressure from other relatives to administer the trust in a way that differs from the instructions you left. Other family members may want to challenge how the trust is being managed. It is important to choose someone who will remain committed to the trust and the instructions you left within it.
• Willingness: Administering a trust can take a great deal of time and effort, particularly if the trust has a high net worth, multiple beneficiaries, complex assets, or if there is a dispute. Anyone you choose as trustee should be willing to take on the role.

Does the Trustee Have to Be a Family Member? 

Your trustee does not have to be related to you. Although many people choose loved ones, there are other options. People often choose a professional who has no relation to the family, usually an accountant or attorney, to take on the role of successor trustee. Trust companies and banks also administer thousands of trusts for grantors. These professionals can provide a high level of financial and legal expertise to ensure the trust is administered properly.

Our Trust Planning Attorney in St. Petersburg Can Provide the Advice You Need 

There are many decisions to make when establishing a trust and choosing a trustee is just one of them. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning attorney provides the sound advice you need so you can make informed decisions and have the confidence you need going forward. Call us today at 727-471-5868 or contact us online to request a consultation and to learn more about how we can help with your case.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

What are the Advantages of Revocable Trusts?

Many people find that revocable trusts provide flexibility, privacy, and control over their own property. Even if your estate is not large, you will likely still find that there are many benefits of revocable trusts. These include:

• Avoid probate: By far one of the biggest advantages of revocable trusts is that they can allow your loved ones to avoid probate. Trusts are separate legal entities from your estate and so, the property within them is not subject to probate. Probate can be a long and expensive process and many people look to avoid it by using a trust.
• Flexible: During your lifetime, you can fund the trust by placing property into it and you can access and control those assets. If your circumstances change, you can even dissolve the trust.
• Asset management: You can include provisions within your trust your trustee must follow. For example, you can include a spendthrift provision so that a beneficiary does not waste their inheritance.
• Limited challenges: While the grounds for contesting a trust or will are essentially the same, it is generally much harder to contest a trust because the probate courts are not involved.

What are the Drawbacks of Revocable Trusts?

Although drafting a trust has many benefits, these legal tools have some drawbacks, as well. These are as follows:

• Costs: Creating a trust is generally more complicated and expensive than simply drafting a will. While this can help save your family costs after you pass away, it may also mean that establishing a trust might not be worthwhile if you do not have a significant amount of assets.
• Hassle of funding the trust: Creating a trust, unfortunately, is not enough. You must also fund it, which requires you to transfer title on certain property, open new bank accounts, and more. All of this can be stressful and inconvenient but without doing these tasks, neither you or your family will reap the benefits of the trust.
• Trustee issues: If your beneficiaries feel as though the trustee you have selected is mismanaging assets or not complying with the terms of the trust, they can ask the probate court to remove them. The assets in the trust may be used to defend this action.

Call Our Trust Planning Lawyer in St. Petersburg Today 

Revocable trusts have many benefits and some drawbacks, making it more difficult to determine if one is right for you. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can review the details of your estate and your family and advise on the strategies that may be best for you. Call us today at 727-471-5868 or contact us online to schedule a consultation with one of our experienced attorneys and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Your trustee must consistently follow your intents as expressed in the terms of the trust as well as the statutory obligations of a trustee under the law. Such responsibilities include investing assets owned by the trust, distributing property to beneficiaries, and more. As such, it is important that you choose your trustee wisely. Below, our St. Petersburg trust planning attorney outlines tips to consider when selecting the trustee.

Legal and Financial Expertise is Not Necessary 

Your trustee is not required to have any legal or financial expertise.  However, it is recommended that trustees work with an attorney and potentially other professionals who can help with the nuances involved in administering a trust.

Although trustees do not have to be experts, they should be organized and able to make fair decisions for all beneficiaries. A trustee should also be available to beneficiaries and others, and have good communication skills.

Trustworthiness is Essential 

The most important quality to look for in any trustee is trustworthiness. You must be able to trust the individual to follow out your intentions as expressed in your trust. Your trustee will have to manage your property in a manner that honors your wishes, whether that is making charitable donations, providing for loved ones, or carrying out any other instructions you have left.

Many people choose a trusted relative or close friend to serve as trustee because they understand your priorities and values. Children, siblings, or trusted friends may know your intentions regarding the distribution of your property, carrying out specific instructions, or funding healthcare or education for your children.

Choose a Successor Trustee 

There may come a time when the trustee you have chosen cannot serve in the role. For this reason, it is important to choose at least one successor trustee. You can name multiple successor trustees in order of priority, if you desire. People sometimes choose a successor trustee from a different generation, or a professional entity, such as a trust company or licensed trust attorney. This can help ensure seamless management of the trust.

It is important to note that trusts do not fail because a successor trustee has not been named. However, naming a successor trustee allows you to still be in control of who is acting as trustee of the trust if the original trustee is unable to serve.

Contact a Trust Planning Attorney in St. Petersburg 

There are many important decisions to make when creating a trust and you should not make them on your own. A St. Petersburg trust planning attorney can provide the advice you need. At Legacy Protection Lawyers, LLP, our knowledgeable attorney can help you choose the right trustee for your needs and ensure your trust is funded and executed properly so you can have the peace of mind you need. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the legal help you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

What is Trust Funding? 

Trust funding simply refers to the process of transferring assets currently in your name to the name of the trust. This typically requires you to transfer the titles of those assets and remove your name to reflect the name of the trust. You and your spouse may retitle jointly owned assets to a joint trust, or you can place the property into your individual trusts in equal or unequal portions.

Property to Place in a Trust 

There are many different types of assets you can place into a trust. The most common of these include:

• Real estate: Real estate is known as ‘real property’ in Florida and it is one of the easiest assets to place into a revocable trust. A quitclaim deed is usually all that is necessary, but the deed must be properly prepared and recorded in the county where the real estate is located.
• Businesses: Your trust planning lawyer can transfer a business into your revocable trust by preparing a simple assignment. If your shares or portion of a business have restrictions on transfers, your lawyer can help you obtain permission to allow the assignment to the trust.
• Personal property: Some of the most common types of personal property transferred to trusts includes household goods, boats and watercraft, motor vehicles, pictures, china, silverware, jewelry, and clothing.
• Bank accounts: A revocable trust is one way to transfer a savings or checking account to your loved ones upon your death. Each financial institution has their own rules for this and while they are sometimes simple, they can also be quite complex. You can also create a payable-on-death beneficiary who will automatically receive the funds when you pass away.
• Life insurance: You can designate the revocable trust as the beneficiary of your life insurance policy. Upon your passing, the insurer will then pay the proceeds to the successor trustee named on the trust. The successor trustee will distribute the proceeds according to the instructions within the trust.

Our Trust Planning Lawyer in St. Petersburg Can Help with Funding 

Funding a trust sounds fairly straightforward but if proper procedures are not followed and rules are not adhered to, your trust may not provide the protection you had hoped for. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can ensure your trust is properly funded and make things easier for you and your family. Call us today at 727-471-5868 or contact us online to schedule an appointment with one of our experienced attorneys and to learn more.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Failing to Show Intent to Create the Trust 

Florida courts take property rights very seriously, and so, it is essential that you show your intention to create a trust. You must be clear in your intention to relinquish control of the assets to the trust and potentially for someone else. Your intention must be very specific. With a living trust, you generally control the trust during your lifetime and retain the right to revoke it.  If you fail to show intent to create the trust, it may be contested or deemed void by the court.

Not Sufficiently Funding the Trust 

The main function of a trust is to hold property, meaning you must “fund” the trust. If you fail to fund the trust properly before you pass away, your assets will not end up in the trust and likely will be subject to probate. Funding a trust means transferring the title of the property from its current title to the trust.  For example, you may own an asset in your individual name, and to put that asset into the trust, you will change the title on the property to the name of the trust. This shows a change of ownership and will protect your property from probate.

Using Vague Terms 

Florida courts generally do not consider terms such as ‘hope’, ‘request’, or ‘desire’ adequate to enforce a trust. If you use this type of language when in your trust document, it may result in litigation. You can avoid this by using clear and specific language. There should be no doubt about your wishes. The best way to avoid this mistake is to work with an attorney who will ensure your trust includes appropriate language.

Not Naming Beneficiaries 

Again, the main purpose of a trust is to hold properties that will be transferred to your beneficiaries when you pass away. You must clearly designate beneficiaries by name. Using language such as ‘my children’ may be too vague and may result in complex litigation if there is a dispute between biological children and stepchildren or adopted children. If there are no beneficiaries named, the trustee and the court cannot effectively administer the trust.

Our Trust Planning Lawyer in St. Petersburg Can Draft Your Document 

Living trusts have many benefits, but they must be drafted and prepared properly in order for your last wishes to be respected. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can help you create your trust to protect you and your family. Call us today at 727-471-5868 or contact us online to schedule a consultation and to learn more about how we can help.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Advantages Wills Have Over Trusts 

If you have a will-based estate plan, your executor will have to go through the probate process. This is true even if no one is contesting the document and even if the property within it is relatively small. The probate process is one that many people want to avoid, as it can be very costly and time-consuming. Still, even though the probate process is associated with a great deal of stress and headaches, there are times when a will may be a better option than a trust.

In some instances, the administrative fees associated with trusts can drain the funds within a trust before the beneficiaries ever receive their inheritance. With the exception of filing fees and attorney fees, wills do not have the same administrative costs as trusts. A pour-over will is often a good solution for people who want to create a trust but also want to draft a will. Pour-over wills transfer all of a person’s property and assets into a decedent’s trust after they pass away, so they are not subject to probate.

Advantages Trusts Have Over Wills 

When people hear the word ‘trust,’ they often think that they do not have enough money or property required to fund the trust. It is a common misconception that trusts require a large estate. This may be due to the fact that the word ‘trust’ is often associated with ‘trust fund babies’ or large philanthropic organizations that operate exclusively out of a trust.

Truthfully, trusts can require much less in administrative fees to set up and manage. Those funds are also taken right out of the trust, so it can fund itself. While the facts of every case are different, administrative fees for a trust can begin at $2,500. Compare this with probate fees, which can range from $3,000 to $8,000 and exceed $100,000 if litigation is involved, and drafting a trust can be much more affordable than creating a will.

Another benefit that comes with avoiding probate by using a trust is that the beneficiaries can receive their inheritance right away.

Our Trust Planning Lawyer in St. Petersburg Can Advise On Your Case 

Whether you need a trust or a will depends entirely on your own situation. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can review the facts of your case and recommend the solution that is right for you. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the legal help you need.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html

Parties Named in a Trust 

Before understanding when you can change an irrevocable trust, it is important to know the parties who are named in these documents. These are as follows:

• Grantor: This is the person who executes the trust and funds it.
• Trustee: The person who is responsible for managing the trust is known as the trustee. Grantors often manage the trust themselves during their lifetime and appoint a trustee to manage it after they pass away.
• Beneficiaries: The individuals who will benefit from the trust and receive the property held within it are the beneficiaries.

When Can You Modify an Irrevocable Trust? 

Florida law allows courts to modify irrevocable trusts if the change reflects the grantor’s intentions. Generally speaking, there are three instances in which the terms of an irrevocable trust can be modified. These are as follows:

• The goal of the trust has become impractical, impossible, or illegal, or the trust’s purpose has been fulfilled,
• There have been circumstances that could not be anticipated and they interfere with compliance of the trust, or
• An original and important purpose of the trust is now non-existent.

Unforeseen circumstances are the most common reason for modifying an irrevocable trust. For example, if a beneficiary of the trust passes away, it will have to be modified to reflect this. When a trust is no longer in the interest of the beneficiaries, the trust may also be modified.

Modifying an Irrevocable Trust Under Common Law 

You may also be able to modify an irrevocable trust using common law in Florida. Common law allows for the modification of an irrevocable trust without the need for the court to establish the practicality of the trust. It is possible for the grantor and beneficiaries to reach an agreement to modify or revoke the trust before petitioning the court for a modification. If all parties involved agree to the change, there is no reason to keep the trust in its current state.

Reformation 

Reformation is a process of modifying a trust when the terms were affected by a mistake of law or fact. If someone with an interest in the estate asks the court to reform a trust, the court may grant the request even if the language is specific. The party asking for the reformation must clearly establish that the intent of the grantor was affected by a mistake.

Our Trust Planning Attorney in St. Petersburg Can Advise On Your Case 

If you need to create a trust or modify an existing one, our St. Petersburg trust planning attorney can provide the legal help you need. At Legacy Protection Lawyers, LLP, our experienced attorneys can help you through the process and build a case that will give you the best chance of a favorable outcome. Call us now at 727-471-5868 or contact us online to request a consultation.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Can I Act as the Trustee? 

If you are currently competent and can handle your own financial affairs, you can act as the trustee of any trust you create. In fact, most people designate themselves as the trustee. If you are married, you and your spouse can act as co-trustees.

Can I Access the Property Placed in a Trust? 

If you act as the trustee, you can manage the property within it on your own. You will have the right to save, spend, invest, or give the property away, just as you currently do. You can manage the assets and if at some point in the future the current terms of the trust no longer work for you, it is possible to modify or revoke it at any point without facing any penalties.

Do I Need a Living Trust if I Have a Durable Power of Attorney? 

Many people do not think they need a living trust because they already have a durable power of attorney. Truthfully, though, financial institutions are hesitant to give anyone access to your assets except you. Even if your agent presents a valid durable power of attorney, they may face difficulty with the financial institution. On the other hand, if you have both a durable power of attorney and a living trust, it can make it much easier for your agent.

Are Living Trusts Public? 

While your last will and testament will become a matter of public record, the same is not true for living trusts. Living trusts are private documents and so, they are not entered into public record. If you own real estate, the deed to the property should be part of public record but this is true whether you place the property into a trust or not.

Should I Put Real Estate in a Different State Into a Living Trust? 

You not only can put real estate in a different state into a living trust, but you should. If you do not and you pass away, your loved ones will have to go through the probate process in each state you own property. If you place property into a living trust, though, it does not have to go through probate.

Our Trust Planning Lawyer in St. Petersburg Can Answer Your Questions 

You may have a lot of questions when creating a trust, which is why you should always work with a St. Petersburg trust planning lawyer. At Legacy Protection Lawyers, LLP, our experienced attorneys are committed to making sure you understand every part of the process. We will answer your questions and provide sound legal advice according to what is best for you and your family. Call us now at 727-471-5868 or contact us online to request a consultation and to learn more.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Using a Supplemental Needs Trust

One of the most important estate planning tools you should use is a Special Needs Trust, also known as a Supplemental Needs Trust. This specific type of trust is a legal document intended to provide financial support to an individual with special needs without interfering with their eligibility status for certain government benefits, such as Medicaid or Supplemental Security Income.

A Special Needs Trust can also hold property for the benefit of an individual with special needs without giving them control over it, if they do not have the legal capacity to manage their own affairs. If the grantor, which is the legal term for the person who created the trust, passes away, a Special Needs Trust will be managed by the successor trustee of the trust, so the special needs beneficiary will continue to benefit from the trust even after the grantor is gone. When choosing a trustee for a Special Needs Trust, it is important to assign someone who has the necessary skills to manage it.

Choosing a Trustee for a Special Needs Trust

Assets held within trusts typically grow over time, so it is usually recommended that you choose a trustee who has financial knowledge that will allow them to properly manage the trust. Some of the most important factors to consider when choosing a trustee for a Special Needs Trust include:

• Does the individual have a thorough knowledge and understanding of the special needs beneficiary, as well as the beneficiary’s unique needs and situation?
• Does the potential trustee have the ability to encourage communication between the beneficiary, service providers, and caregivers?
• Will the individual be able to hire and regularly monitor service providers?
• Can the individual help secure medical care, housing, and pay the bills?
• Does the individual know the government benefits the beneficiary is receiving, as well as the importance and purpose of them?

In addition to having a comprehensive knowledge of the financial responsibilities involved, any trustee should also have certain technical expertise as well. They should have a thorough understanding of the trust, wisely manage the investment assets within it, set up accounts for the management of assets, and conduct regular inventories of the assets within a trust. It is important to note that a trustee does not have to be a family member or friend. Independent professionals and financial institutions can serve as the trustee of a Special Needs Trust.

Our Trust Planning Lawyers in St. Petersburg Can Help Protect Your Family

If you care for someone with special needs, you need sound legal advice. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyers can provide it and help you include important elements in your estate plan that will provide the necessary protection. Call us now at 727-471-5868 or contact us online to schedule a consultation.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

Failing to Fund the Trust

One of the most common reasons trusts fail is because grantors fail to fund them. Once a trust is created, they must be funded, which means assets must be re-titled into the name of the trust. Many people fail to do this, or do not do this properly. For example, current assets must be retitled into the name of the trust and any assets acquired after the creation of the trust should also be retitled into the name of the trust.

If any assets are not included within the trust, those assets will likely have to go through probate.  If you do not have a Will that directs that probate asset into your trust, then your asset that you forgot to include in your trust may pass to someone other than your intended beneficiaries. Due to the fact that most people create a trust to avoid probate and to ensure that their assets pass to the beneficiaries named in the trust, the trust will essentially be ineffective.

Failing to Identify Goals for the Trust

It is not uncommon for people to want to create a trust, but they are unsure of the goals they have for it. Do you have a child with special needs? Or a charity you want to support? It is important to work with a St. Petersburg trust planning lawyer you feel comfortable with, as you will have to share personal information with them so they can develop a better understanding of your goals. Once they are aware of what you want to achieve with a trust, they can provide the sound advice that will help you reach your goals, and protect your legacy.

Failing to Update the Trust

After a trust is created, many people simply set it aside and forget about it. However, trusts are living documents and they must be maintained and updated regularly. You must update your trust when you acquire new assets you want to protect from probate, or when your life changes, such as when the family welcomes a new baby. Even if there are no major life changes and you do not think you have assets you want to place in the trust, you should meet with your trust planning lawyer at least every other year to make sure the trust is properly updated.

Our Trust Planning Lawyer in St. Petersburg Can Ensure Your Plan is Effective

At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can provide the sound legal advice you need to ensure your entire estate plan is effective and will protect your loved ones after you are gone. Call us now at 727-471-5868 or reach out to us online to schedule a consultation with our experienced attorney.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html