Seminole Trusts Lawyer
A trust is a legal arrangement through which one person (or an institution, such as a bank), called a "trustee," holds legal title to property for another person, called a "beneficiary." The person who creates the Trust is known as the "settlor". The rules or instructions under which the trustee operates are set out in the trust instrument. Trusts have one set of beneficiaries during their lives and another set -- often the Settlor's children -- who begin to benefit only after the first group has died.
Uses of Trusts
There can be several advantages to establishing a trust, depending on your situation. Best-known is the advantage of avoiding probate. Upon the Settlor's death, any property held therein passes to the beneficiaries under the terms of the trust without requiring probate. The avoidance of probate can save time and money for the beneficiaries. Certain trusts can also result in tax advantages both for the donor and the beneficiary. These are often referred to as "credit shelter" or "life insurance" trusts. Other trusts may be used to protect property from creditors or to help the donor's children or spouse qualify for Medicaid. Unlike wills, trusts are private documents and only those individuals with a direct interest in the trust need know of trust assets and distribution. Provided they are well-drafted, another advantage of trusts is their continuing effectiveness even if the donor dies or becomes incapacitated.
Kinds of Trusts
Trusts generally fall into two basic categories: testamentary and inter vivos.
A testamentary trust is one created by your will, and it does not come into existence until you die. This would commonly be used when there are minor children, so that the children's inheritance is not held under a guardianship. In contrast, an inter vivos trust starts during your lifetime. You create it now and it exists during your life.
There are two kinds of inter vivos trusts: revocable and irrevocable.
To schedule an initial consultation to discuss trusts, call us at 727.475.6680 or contact us online any time.
