Florida Trusts

Author

Robles Law P.A.

For more information about the author, click to view their website: Robles Law P.A.

Posted on

Apr 24, 2023

Book/Edition

Florida - Sarasota, Bradenton & Charlotte Counties

share-this
Share This

Trusts can be very useful, but they are not for everyone. Here, commonly asked questions are answered. If you are thinking about opening a trust, already have a trust and have questions, or are simply unsure of what to do about an estate plan, contact our lawyer for trusts in Sarasota to schedule a Free 30-Minute Consultation and get answers to your specific questions.

What is a Trust?

A Trust is a fiduciary relationship wherein one person or entity, known as the Trustee, has custody and control over certain assets. The custody and control of the assets are given to the trustee by the Settlor/Grantor. The Trustee has the responsibility of managing the assets according to the terms of the Trust and for the benefit of the person, persons, or entity the Trust was created for. The person, persons, or entity benefiting from the Trust is known as the Beneficiary.   

There are different types of Trusts designed for various situations, like:

  • Revocable Trusts
  • Irrevocable Trusts
  • Charitable Trusts
  • Special Needs Planning
  • Spendthrift Trusts
  • Testamentary Trusts
  • Gun Trusts

Trusts can be very specific, or they can be broad. People opt for different ones to satisfy different purposes. 

When Do I Need a Trust in Florida?

Trusts can be used at any age and for a variety of reasons. Some of the most common reasons people will benefit from the use of a Trust include:

Inheritance

If you have inherited a large number of assets, it is a good idea to look at a trust to manage them and keep them safe. It is also beneficial to place your own assets in a Trust to protect your children's inheritance. 

Special Needs Family Member

If you have a child or other member of your family who has special needs, a Trust is a common way to protect any assets they may have access to. The Trustee will ensure the proceeds of the Trust are used for the special needs family member and not for some other purpose.

Privacy Matters

The terms of Trusts, unlike Wills, are not made public. Trusts are a good choice if you do not want the details of your financial matters made public.

What are the Benefits of a Trust in Sarasota?

Benefits of a Trust vary, but can include:

  • Keeping certain assets judgment-proof
  • Providing income to a special needs family member without having that income render them unable to receive public assistance
  • Tax benefits
  • Ability to avoid the probate process

There may be other benefits available to you depending on the circumstances of your situation.

What are the Disadvantages of a Trust in Sarasota?

Irrevocable Trusts: Some Trusts are irrevocable, meaning that once created, the Settlor/Grantor is unable to change the terms of or revoke the Trust in its entirety. This loss of control is a huge disadvantage to many. That said, the Trust may still be terminated, but it can be a lengthy process involving all parties to the Trust. 

Revocable Trusts: Fortunately, it is possible to create revocable trusts (Trusts that can be changed), but these types of Trusts vary in the purpose that may not reflect the reason you created an irrevocable trust.

Another disadvantage is the amount of paperwork involved in setting up a Trust and the costs associated with creating and managing it.

How Do I Terminate or Modify a Trust in Florida?

The ability and process to terminate or modify a Trust may depend upon the terms of the Trust itself. Some make the process easy, and the Settlor/Grantor may retain the ability to terminate or amend the Trust up until the moment of their death. Others are formed in such a way that once they are formed, termination or amendments require a complex process and, in the end, may not be eligible for termination or modification. 

If I Make a Trust in Florida, Do I Still Need a Will?

A Will is always a good idea. It may seem confusing to need a Will and a Trust, but reasons exist to have both, even though the Will may never be used. Here are two important reasons:

  1. Guardian for minor children. You cannot name a guardian for minor children in a trust. So if you have children under the age of 18 years, you should designate a guardian in a Will.
  2. Property not transferred to the trust. Trusts are created all the time, and trustors often forget to transfer assets they obtain after creating the trust. If this property is not in the trust, it will not be disbursed by the trust but through probate. A Will helps ensure everything goes where it's intended and is not challenged in probate court. 

How Much will Setting Up a Trust Cost?

The costs to set up the Trust are minimal, but it depends on the legal services you need and the extent of those services. The more complex the Trust, the likelier the costs will increase. Plus, some estate planning lawyers charge by the hour while other charge a fixed rate. Knowing what's included and excluded in those rates will also inform what the total costs of the Trust are.

Do I Need a Trusts Attorney in Florida?

Setting up a Trust is a sound strategy whether doing it for financial reasons or ensuring your Beneficiaries have all the resources they will need after you are gone. For simple trusts, you might be able to use do-it-yourself software or online service, but to make sure the process is undertaken so that the Trust cannot be challenged in court, it is always a good idea to have an estate planning Attorney review the Trust and confirm it is executed properly.

For more a Trust with many assets, multiple Beneficiaries, and/or complex instructions, it is always advisable to have an Attorney draft, review, and execute it. The laws can get confusing. Plus, anytime you deal with finances, it's always good to have someone with experience follow up. Also, we can help you:

  • Choose an appropriate Trustee
  • Update documents as needed and when appropriate
  • Avoid probate
  • Protect assets
  • Achieve estate planning goals

Contact a Trust Lawyer in Sarasota Today

At Robles Law, P.A., our Trusts Attorney in Florida will help identify what trust works best in your unique circumstances. There are many types of Trusts that can be created to suit your needs, and each has their benefits and disadvantages. We can help you weigh the pros and cons against what your specific needs are. Contact us at (941) 315-2114 to schedule a Free 30-Minute Consultation and learn what type of Trust can complement your estate plan today.

Other Articles You May Like

Cutting spending can help boost retirement savings

Like most of us, you may someday want to enjoy a comfortable retirement. Your ability to achieve this goal will depend on how much you save but it also matters how much you spend.            And saving and spending are certainly related: The more you can reduce your spending, the more money you could have available to save for retirement through your IRA and your 401(k) or other employer-sponsored retirement plan. Over many years, even relatively small amounts diverted from spending to saving and investing could add up substantially.             How can you go about potentially reducing your spending? Here are a few suggestions: Use a budgeting tool. If youre not already doing so, you might want to consider using a free online budgeting tool. Among other capabilities, these apps can place your spending in categories groceries, travel, entertainment, and so on  which can reveal redundancies that, once eliminated, could save you money. For example, you might find that youre spending a not-insignificant amount on streaming services you rarely use. Or you might be surprised at how often you go the grocery store, rather than consolidating your visits and reducing the likelihood of impulse purchases. Take advantage of employee benefits. If you work for a mid-size or large company, you may have an extensive employee benefit plan, which could include discounts on some products and services. Also, if you are enrolled in a high-deductible health plan through your employer, you might have access to a health savings account (HSA) or flexible spending account (FSA), either of which may let you lower your out-of-pocket health care costs by using pre-tax dollars to pay for deductibles, copayments, coinsurance and some other qualified expenses. Shop around for insurance. To some extent, we are all creatures of habit, which can be good in some circumstances and not so good in others. In the not so good category, many people stick with their auto, homeowners and life insurance policies year after year, even though they might be able to save some money by switching to another company. But even if you stay with your current company, you might find ways to save money by taking steps such as adding a home security system. Check with your insurer to learn more. Compare credit cards. Theres a piece of financial advice that essentially says: Pay cash for everything and this isnt a bad idea. Ideally, you might want to use a credit card strictly for items such as car rentals or hotel reservations, and you should pay off the bill each month to avoid interest charges. Sometimes, though, you may need to use your card for other purposes, and it may not always be possible to pay your bill in full. Thats why youll want to review credit cards periodically to find one with lower interest rates, a favorable balance transfer offer and a better rewards program.Its not always easy to cut down on your spending, but when you do, it can provide more peace of mind and an opportunity to boost your savings for what could be a long and active retirement. Chad Choate III, AAMS 828 3rd Avenue West Bradenton, FL 34205 941-462-2445 chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Preparing Your Heirs for an Inheritance: Key Questions to Help Ease the Transition

In the popular imagination, receiving an inheritance always sounds like a good thing after all, who doesnt want a financial windfall? And inheritances can certainly be life-altering events. But they can cause challenges, so youll want to help your heirs be prepared.            To assist in this preparation, try to address some key questions affecting your heirs:             Do they know whats in your estate plans? Your family and other heirs will be much better prepared to deal with an inheritance if they know what to expect. Thats why its so important that you share your estate plans with everyone involved. You need to let them know the wishes and decisions youve expressed in your will and other legal arrangements, such as a living trust. Of course, sharing this information doesnt necessarily mean that all your heirs will be completely satisfied with your choices but at least they wont be surprised, and perhaps will be less likely to cause disputes when the time comes to settle your estate.             Will they know what to do with the money or other assets? You may be planning to leave your grown children a sizable amount of assets, possibly including cash, stocks, real estate, IRAs, 401Ks or other types of valuable personal property. But this inheritance brings with it several possible questions: Do your heirs already have an investment platform ready to accept inherited stocks? If you do leave behind rental property or a vacation home, can it be easily sold? These types of issues are generally not hard to resolve, but the more prepared your heirs are for their inheritance, the quicker they can take whatever actions are needed.               Are they prepared to handle any taxes that may result from the inheritance? Unless you have a very large estate, your heirs likely wont face federal estate taxes. (In 2024, the first $13.61 million of an estate is exempt from federal estate taxes.) However, other types of taxes may apply. A few states assess state inheritance taxes, and your heirs could incur federal and/or state income taxes when they withdraw money from inherited assets funded with pre-tax dollars, such as some retirement accounts. They could also face capital gains taxes when they sell inherited assets, such as stocks, for more than they were worth at the time of the inheritance. In any case, inheritance-related taxes can be complex, so you and your family and other heirs should discuss these issues with your tax advisor.             Will they be liable for any outstanding expenses? If you have developed a comprehensive estate plan, it's unlikely your heirs will be on the hook for any outstanding expenses, such as credit card balances or funeral costs. If you do still carry a mortgage, though, and you are planning on leaving your house to your heirs, they may want to be prepared to act quickly to sell it.            When leaving an inheritance, theres a lot involved emotionally, financially and legally. So, do whatever you can to make the entire process as easy as possible for your loved ones. By communicating your wishes regarding the inheritance, and by considering all the issues that may arise, you can go a long way toward achieving the outcomes you desire. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.comThis article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Balancing College Savings and Retirement: How to Prioritize Both for a Secure Future

If youre a parent, you want to do everything you can to help your children succeed in life. Therefore, you might think that one of the best things you can do is to save for your childrens college education. And this is certainly admirable, but could it conflict with your ability to prepare for another key goal your own retirement?Of course, this would not be a problem if you had unlimited means, but most of us dont fall into that category. So, given the financial resources and income you do have, how should you approach the college-versus-retirement issue?Fortunately, its not necessarily an either-or scenario. However, it may make sense to prioritize saving for retirement over college, for two reasons.First, your children have a lot more time to pay for college than you have to save for retirement. In addition to any grants or scholarships your children may receive, they might need to take out loans. While its a good idea to keep this debt load as manageable as possible, its also true that most student loans can be repaid over a long period of time.And heres the second point: One of the best gifts you can give your children is to be self-sufficient in your retirement. You could easily spend two, or even three, decades as a retiree, so you will need to build considerable financial resources to pay for all those years. Your adult children will have their own financial needs to address, so youll be doing them a great favor by relieving them of any financial responsibilities on your behalf. Taking these factors into account, you may want to direct most of your saving and investing efforts toward achieving a comfortable retirement. Consequently, think about putting away as much as you can afford into your IRA and 401(k) or other employer-sponsored retirement plan. Even with this focus on retirement, though, you may find opportunities to save and invest for your childrens education. For example, if you receive bonuses or income tax refunds, or your salary goes up, or youre able to free up money from your budget by reducing your debts, you could use these funds to invest in an education savings vehicle, such as a 529 plan. When you invest in a 529 plan, your earnings and withdrawals are federally tax free, provided the money is used for qualified education expenses such as tuition, room and board, books, and computers. Depending on where you live, you may also get some state tax benefits from your 529 plan. And a 529 plan isnt just for college it can be used for K-12 private school tuition costs, plus expenses from qualified apprenticeship programs, such as those found at trade schools eligible for Title IV federal student aid.It might not be easy to save and invest consistently for your retirement and your childrens education. But both goals are worthy after all, retirement can last a long time and college is expensive. So, try to develop a financial strategy that can allow you to make progress in both areas your efforts may well be rewarded.               Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL 34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. 

Local Services By This Author

Robles Law P.A.

Elder Care Planning & Consulting 7729 Holiday Drive, Sarasota, Florida, 34231

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.

Robles Law P.A.

Certified Patient Advocate 7729 Holiday Drive, Sarasota, Florida, 34231

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.

Robles Law P.A.

Power of Attorney 7729 Holiday Drive, Sarasota, Florida, 34231

At Robles Law, P.A., we specialize in bringing the law to your corner. We offer concierge services for housebound seniors or those who are unable to leave the hospital, nursing home or skilled nursing facility.  Whether it is applying for Medicaid or Veterans' benefits or planning ahead for Medicaid or Veterans' benefits, Robles Law is here to help.  As the Medicaid programs and Veterans' benefits programs change every year, a consultation is required to clearly analyze your individual situation and goals.  We will work with you every step of the way to make sure that you understand the choices you are making and feel empowered to make them.