Orlando Trust Attorney
Trusts are powerful estate planning tools that were once only accessible to the wealthy; this has all been changed by word processing and computers. Trusts are now affordable estate planning documents that may save your family thousands of dollars, months of time, and may help avoid probate completely. Trusts may also help effectively plan for a variety of issues that you may wish to address including:
- Children with special needs;
- Family with special needs;
- Spendthrifts;
- Children with drug or alcohol addiction;
- Tax planning;
- Financial planning;
- Avoiding probate;
- Avoiding guardianship;
- Other issues
At the Kramer Law Firm in Longwood, Florida, we understand the importance of planning for your family and saving money. Our Trust attorneys are ready to help you create a Trust and any other estate planning documents that may be necessary. Contact an estate planning lawyer at the Kramer Law Firm at 407-834-4847 to assist you with drafting a Trust.
Trusts
Trusts are estate planning tools that provide additional control, and allow for more comprehensive estate planning. A Trust is a legal entity that holds assets which are managed for the benefit of the designated beneficiaries. The person who creates the Trust is called the settlor. The settlor is also referred to as the donor, Trustor, grantor, or founder. Trusts are managed by a Trustee, who is usually selected by the settler at the creation of the Trust. The Trust document contains terms, which govern how the Trust will be managed, designates the Trustee and the beneficiaries, and provides for the circumstances under which the Trust income or assets are distributed. Once the Trust is drafted, the settlor transfers assets into the Trust and Trustee begins managing the Trust in accordance with its terms.
A Trust may take effect either during the settlor's lifetime or after the settlor dies. A Trust that is created and becomes effective during the settlor's lifetime is known as an inter vivos Trust or a living Trust. A Trust that is created by will and does not become effective until the settlor dies is called a testamentary Trust. A Trust that cannot be terminated once it is created is called an irrevocable Trust. A Trust that can be terminated by the settlor after it is created is called a Revocable Trust. Usually, a Trust is considered irrevocable unless the settlor has specified that it is revocable. Contact a Trust attorney at the Kramer Law Firm to help create an effective estate plan.
Revocable Trusts
A Revocable Trust is a document (the "Trust agreement") created by you to manage your assets during your lifetime, upon your death the remaining assets would be distributed according to your wishes. The person who creates a Trust is called the "settler." The person responsible for the management of the Trust assets is the "Trustee." During your lifetime you may serve as Trustee, or you may appoint another person to serve as your Trustee. The Trust is "revocable" since you may modify or terminate the Trust at any time during your lifetime for any reason, as long as you are not incapacitated.
The Trustee manages the Trust property during your lifetime. If you become incapacitated, the Trustee may continue to manage the Trust assets, and address any financial concerns. This is a great benefit as it may avoid the need for a court-appointed guardian of your property. If you were Trustee and became incapacitated, the person selected as successor Trustee would step into your shoes.
Another advantage of the Trust is that it may avoid probate by effecting the transfer of assets during your lifetime to the Trust. Because the property was transferred during your lifetime, there is no need to file a probate to transfer those assets; the Trustee has immediate authority to manage and pass on the Trust assets at your death according to your wishes.
The Trust also provides other advantages. If structured properly, the Trust may assist in eliminating estate taxes. The Trust also provides a framework for financial management, in the event that you have a disabled child, a minor child, a child with a substance abuse problem, or a child that is poor at managing money; after your death, the Trust would continue, managed by the successor Trustee, and provide money to your heirs according to your terms and wishes, which would take into consideration the limitations of your child.
The most important consideration in implementing a Trust is understanding that the funding of a Revocable Trust is critical to successfully avoid probate. If all assets subject to probate are placed into the Trust, then there is likely no need for a probate. However, if even one asset, subject to probate is not placed in Trust, than the estate will likely have to be probated. As a safeguard, and because there is a possibility that the Revocable Trust may not completely avoid probate, we recommend that every person implementing a Trust, also draft a pour-over will, which provides that any assets outside of the Trust should be transferred into the Revocable Trust.
A Revocable Trust may save you family money by avoiding probate, guardianships, and possibly eliminating estate taxes. Revocable Trusts also provide a tool for financial management if your heirs are not good with money. In any case, a Revocable Trust should be implemented as part of an overall estate plan. Contact a Trust lawyer at the Kramer Law Firm to discuss Revocable Trusts in detail.
Contact an Orlando Estate Planning Lawyer at the Kramer Law Firm
There is no one-size-fits-all approach to estate planning, and an estate plan should be tailored to meet your needs. An attorney at the Kramer Law Firm will work with you to draft a will or create a Trust designed to help you achieve your objectives; contact an Orlando Trust attorney at the Kramer Law Firm at 407-834-4847 to schedule a consultation. To learn more about wills and Trusts, visit our Estate Planning FAQ.
