What is a Living Trust?

A living trust can be described as a legally binding document that is created by a person while he or she is still alive. The property owner appoints a designated person, also known as a trustee to manage the assets on behalf of the eventual hairs.

The provisions of the living trust agreement categorically stipulate that the grantor is not able to manage the property or assets, the hair or beneficiary takes over the management of the property through a trust.

Considering the complexities that surround the creation of a living trust, it is important to work hand in hand with Florida estate planning lawyers.

How does a living trust work?

Living trusts are normally managed by a trustee who has a legal obligation to properly manage the trust with the best interests of the beneficiaries in his or her mind. He is the person given the mandate to manage the assets by that grantor.

Estate planning attorneys in Florida play an important role when it comes to the creation of living trusts. As a grantor, you are the one to decide who will be the trustee of your assets.

The main objective of doing so is to ensure that your property is channeled to your beneficiaries as per your instructions in the event of your demise.

Choosing a trustee for your trust can sometimes prove to be tricky. That’s where Florida estate planning attorneys come in. Lawyers have vast experience when it comes to handling living trusts and wills. They will be able to advise you on how to consolidate your property and select a trustworthy trustee to manage your property.

Unlike a will, a living trust is in operation while the grantor is still alive. This means that there will be no need for a probate process to distribute assets to the beneficiaries in case the property owner passes on. The role of a trustee is purely to enforce the instructions contained in the trust without changing anything whatsoever.

Types of living trusts

There are basically two types of living trusts namely; revocable and irrevocable living trusts.

Revocable living trust

This is where the settlor or property owner can appoint himself or herself as the trustee of his own estate. This means that he or she is in the control of any assets that belong to him. Nonetheless, the property listed in the trust remains as part of the owner’s trust – meaning the property owner may still be liable for estate tax.

Besides, the settlor or grantor has a right to change or amend the rules contained in the living trust. For example, he or she can decide to transfer assets to a different beneficiary without asking anyone. But it is good to consult with estate planning attorneys in Coral Springs FL to avoid any legal hitches in the future.

Irrevocable living trust

This is a living trust where the settlor or property owner relinquishes some rights with regards to the control of the trust. In this case, the trustee assumes the legal ownership of the trust while reducing his or her taxable estate.

As soon as the agreement for the irrevocable living trust has been made, the names of the heirs or beneficiaries are settled and the settlors can’t do much to change that. Before deciding to make a trust irrevocable, you should talk to a Coral Springs FL estate planning attorney to ensure that you understand everything.

Assigning assets in a living trust

Some assets or properties can be named as beneficiaries of the trust itself instead of assigning them directly to the beneficiaries. This may include assets such as life insurance policies, individual retirement accounts (IRA), and some bank accounts contained in the living trust.

How estate planning attorneys in Coral Springs FL can help

As mentioned earlier, the role of a Coral Springs FL estate planning attorney in the creation of a living trust cannot be overemphasized. There are a lot of things involved in drafting a living trust that requires the services of an experienced estate planning lawyer.

Bakalar & Associates have been in the business of helping Florida residents to create their trust for many years. Contact us today and get the best legal assistance.