Perhaps you have heard of situations when someone dies or becomes incapacitated and the proceedings of their money and other property are held up in court for ages. This is one example of the many issues that can be bypassed by using a properly constructed trust. This handy article will explain why you may benefit from one as well.
What Is a Trust?
Trusts are legally binding fiduciary constructs that allow a third party (the trustee), to hold assets on behalf of beneficiaries. Trusts are highly versatile and can specify the precise disposition of assets to the beneficiaries upon the principal’s demise. Trusts can be broadly divided into two types: revocable or irrevocable.
Contrary to popular belief trusts are not only for the rich and famous. They are useful constructs for the everyday Joe and Jane as well. Indeed, perhaps you are already in need of wills trusts services Florida.
Do You Need a Trust?
Here are a few common situations for which you may need or want a trust:
- To ensure that money is not dissipated foolishly by beneficiaries
- To precisely determine how money is to be given to charity
- To plan for business succession
- To ensure that people with special needs are properly cared for during their lifetimes
- To protect assets from court-mandated probate
- To shelter assets from estate and transfer taxes
How to Set Up a Trust
In general, these are the steps you’ll need to take to legally and properly establish a trust:
- Collect key information regarding finances and assets,
- Seek out qualified advice,
- Register the trust with the Internal Revenue Service,
- Transfer assets into the trust once it is created,
- Administer the trust in accord with the trust’s legal guidelines.
In almost all cases you’ll want to partner with a qualified professional who is well versed in trust preparation and the laws that govern that.