Estate Planning and Trust Attorneys Serving the Jacksonville Area
There are numerous types of trusts, but the trusts allowed in each state will vary depending on their statutes. In Florida, there are a few trust options. However, it is important that you speak with a florida trust and estate planning attorney to see which type of trust is right for your family and your estate concerns. Not all trusts apply to every consumer’s situation, and what is good for a friend or family member may not be right for you. Here are a few types of trusts available in Florida.
Land trusts are common in Florida, and they help insulate real estate from lawsuits in the future. You can have real estate in your land trust, including a family home. In these trusts, the bank is usually the trustee of the property, but the trust itself protects the beneficiaries and their interests in the real estate. As the beneficiary, however, you do not directly own your land any longer; instead, the land is now titled to the trustee.
Some of the disadvantages to land trusts include the following:
- They are difficult to finance because you must reconvey the property out of the trust to the grantors or beneficiaries to complete the financing.
- Any beneficiary who wants Section 1031 tax-free exchanges must transfer the property out of the trust first, then proceed with the transaction.
Land trusts do offer privacy protection, as your information will not show on public records since the property is titled to the trustee instead of yourself.
Nursing home costs are on the rise; therefore, a trust may be a viable option if you want to shelter assets and qualify for Medicaid. The trust, however, is actually designed to leave money to children instead of provide funds for long-term care, in spite of the name.
Revocable Living Trusts
An inter vivos trust in Florida is the most common type of trust used. The settlor of the trust, known as the grantor, retains the interest in the trust during his or her lifetime. Upon death, the trust assets are given to all beneficiaries in accordance with the trust’s terms.
With a revocable trust, you can amend or terminate the terms of your trust at any time.
Irrevocable Living Trusts
An irrevocable trust is one that transfers all assets out of your control; therefore, you are no longer the owner of the property. Instead, the trust owns it. Once the irrevocable trust is in effect, you cannot revoke or change the terms of that trust. The irrevocable living trust does, however, protect you from having to go through probate or deal with estate taxes.
Which Trust is Right for You?
Deciding which trust is right for your estate is not always easy. That is why it is best to speak with an estate planning attorney. A trust planning lawyer can assess your assets, look for potential tax issues, and help you find the right trust based on the protection you require.