Four Benefits Of Drafting A Trust

Many people who are considering drafting their estate plan know that it typically begins with drafting a will. Some people believe that a will is all they need. However, your estate plan may need more than just a will. There are other documents you may want to draft as well, including a trust. Including a trust in your estate plan has many benefits. Trusts are legal documents that can help you achieve goals that a will, or even a power of attorney, cannot. Our St. Petersburg trust planning lawyer explains the biggest benefits below.

Avoid Probate 

When a person passes away, their estate is typically subject to probate. Probate can be a long and complex process that can take one year or even longer. Until the estate is settled and probate is closed, beneficiaries cannot receive their inheritance. Probate can be stressful and time consuming for everyone involved, and with court fees and other administrative expenses, it can deplete the assets in the estate, leaving less for the heirs of the deceased.

One way to avoid the probate process is by establishing a trust.  Once the trust is created, you then fund the trust with property you own, so upon your death, the trust controls where your assets go and avoids the need for a probate. The beneficiaries are named in the trust, and the trustee is responsible for distributing the property according to the instructions in the trust.  Because the assets are titled in the trust and not your individual name, the distribution of your assets occurs outside of probate, helping your loved ones avoid probate entirely.

More Control 

Trusts also give you more control over when and how your loved ones receive any inheritance you are leaving them. For example, if you are concerned that an heir is financially irresponsible, you can place their inheritance in a trust with certain provisions. These provisions can include specific timelines for distributing their inheritance in installments, or it may require the beneficiary to obtain the permission of the trustee before they remove property from the trust.  Also, by leaving a beneficiary’s inheritance in a trust, this gives those assets creditor and divorce protection for the beneficiary’s benefit.

Privacy 

The matters handled in probate court become a matter of public record. As such, anyone with an interest in the estate can look up certain details you may want to keep confidential. Unlike a will, which is recorded among the public records upon your death, a trust never becomes a public record.  By using a trust as your primary estate planning document, the names of your beneficiaries and the distribution scheme remain private.

Incapacity Planning 

Trusts have many benefits for your loved ones after you pass away, but they also can be advantageous for you if you become incapacitated. When you establish a trust, you name a successor trustee who can manage the trust for your benefit if you become incapacitated without needing a court appointed guardian.  Using a trust for incapacity planning is sometimes more effective than using a durable power of attorney.

Our Trust Planning Attorney in St. Petersburg Can Help You Realize These Benefits 

Trusts have many benefits but only if they are properly executed. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning attorney can help establish your trust and ensure it is funded properly so your wishes are respected. Call us now 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=0700-0799/0732/0732.html