Establishing a trust can be a great way to manage your funds. In addition to helping you secure a recipient of your assets after your passing, a trust can prove beneficial to you and your loved ones. If you would like to learn more about creating or managing trusts, contact attorney Susan E. Durre to get started. As a Miami estate planning lawyer with more than four decades of legal experience, I am dedicated to helping my clients explore their wealth preservation options and implement strategies to keep their futures bright.
A trust is a legal entity that holds property or assets for the person who created it, known as the grantor. A grantor can establish a trust to hold resources for themselves or for a beneficiary—someone who will benefit from the trust. The person or organization that manages the trust is known as the trustee. If desired, a person can be both the grantor and trustee, allowing them to manage their own assets and property until they pass away, at which time the beneficiary will receive the trust.
Creating a trust offers several benefits, including:
When a person creates a trust, they will no longer own the assets or properties that they’ve placed into the trust (unless the person is named as the trustee). If your trustee is a bank, the bank owns the objects in the trust. Depending on the type of trust you establish, you may or may not have access to the items in the trust after it is created. The nuances of creating a trust can be difficult to grasp, so it’s in your best interest to secure the help of a qualified attorney to make the most of your assets.
Some of the most common types of trusts are living, testamentary, revocable, and irrevocable trusts. Each type of trust serves a slightly different function. In many cases, the primary differences between types of trusts involve the access various parties have to materials handled under the trust and how these will be distributed during and after the life of the grantor.
Some core functions of the four types of common trusts include:
Of course, there are a wide variety of trusts that may be used to manage your estate. Other types of trusts include charitable trusts, dynasty trusts, and spendthrift trusts. To learn more about which type of trust may serve your needs best, schedule a consultation with our office today.
There are several ways to avoid the probate process for your assets and property, such as creating a revocable trust. During this process, you will make yourself the living trustee of certain items and designate another person to be your successor trustee. Upon your passing, this person will become the trustee of the specified resources and distribute said goods to your beneficiaries.
When an individual with a living trust passes away, the successor trustee will take over management of the decedent’s assets and address the decedent’s debts, pay any taxes, and distribute assets to the appropriate beneficiaries. While there is no formal probate, the trustee must adhere to their fiduciary duties and act in the best interests of the estate and the beneficiaries.