Florida parents who are updating their wills may see things differently than they did years ago. As time goes by, our priorities tend to change, and our families tend to grow. If you want to ensure that your children end up with a sizable inheritance, a trust can be a good choice.
What is a trust?
A trust is a type of legal account drawn up for various assets during the estate planning process. It will name a trustee who is in charge of the assets in the trust. Once the grantor passes, the trustee will retain control of all those assets. This is a great way to help ensure that children receive the inheritance their parents want them to without any large fees for inheritance tax.
How can a trust help protect your child’s inheritance?
While you may have a great relationship with your son-in-law or daughter-in-law, you might still want to legally safeguard your child’s inheritance. In the event that your child ends up getting divorced in the future, you might want to ensure that your hard-earned assets don’t end up in the hands of their ex-spouse. A trust is one way to do this.
A trust can be set up with your child named as the trustee. They can enjoy access to their inheritance in the trust without having to split it with their former spouse upon their divorce. In addition, any assets that your child purchases with funds from the trust would be considered separate property not subject to division if they get divorced.
Setting up a trust can be an effective method of protecting your child’s inheritance from any future ex-spouses. You should rely on the legal advice of an attorney in setting up such a trust. You should also ensure that your child understands what the trust is and how it works.