While trusts are typically associated with wealthy families, anyone in Florida can benefit from creating a trust for their family members. A trust can help young families prepare for the future and protect their children later in life. Better yet, a trust can help you protect your family members from probate, estate taxes and other issues after your death.
What are the benefits of forming a trust?
If you’re the young parent of a special needs child, you might be worried about their future, especially after you’re gone. To protect their future, you can create a trust with financial assets and list your child as the beneficiary. You can also stipulate that only a certain amount of the trust can be paid out at certain times, rather than leaving your child with a massive inheritance. This money can support your child throughout their life, particularly if they’re unable to take care of themselves.
Throughout the estate planning process, you’ll probably be looking for ways to reduce estate taxes as much as possible. If you place your assets in a trust, your beneficiaries might be able to avoid paying estate taxes. Since they’ll be receiving the trust directly, they might avoid the probate process as well.
A trust can also help you take care of yourself as you get older. You can place your financial assets in a trust and name someone to manage your finances. Since you have full control over the trust, you can stipulate that the money can only be used for your benefit. This can keep the trustee from taking your money and doing whatever they want with it. You can also remove the trustee from the trust if you suspect that they’re not acting in your best interests.
Should you seek legal assistance while planning your estate?
If you’re young and you don’t have many financial assets, hiring an attorney might seem like a waste of money. However, an attorney may help you avoid costly mistakes that might affect your loved ones years later. An attorney may also help you manage your assets to benefit yourself and others.