A trust is broadly defined as setting up a form of transferring property or assets while you are still living, which remains in effect in the event of your passing. A trust can be an important tool in estate planning which may keep part, or all of your estate out of probate in the event of your passing.
A trust may be in affect while you or living, or commence at the time of your passing.
A Trust is often the best method to provide for the needs of a beneficiary who will need continuing supervision due to age, disability, other special needs, or lack of financial sophistication.
Ronald L Sims, P.A., represents the legal rights and goals of those creating and setting up a trust, require trust administration, or require legal services regarding trust litigation issues or disputes in Orlando and the Central Florida area. For a confidential legal consultation, please call 407.843.5885.
Just as with an estate administrator, a Trustee is legally responsible in ensuring the act in the best interest of the beneficiary of the trust.
There are two categories of inter vivos trusts: revocable and irrevocable.
Types of Trusts
Testamentary Trust: is created by a will, and it does not come into existence until your passing. Such a trust has no power or effect until the will of the donor is probated. A testamentary trust will not avoid the need for probate and will become a public document, as it is a part of the will.
Supplemental Needs Trust: is used to enable the donor to provide for the continuing care of a disabled spouse, child, relative or friend. The beneficiary of a specially-drafted supplemental needs trust will have access to the trust assets for purposes other than those provided by public benefits programs. In this way, the beneficiary will not lose eligibility for benefits such as Supplemental Security Income, Medicaid and low-income housing. A supplemental needs trust can be created by the donor during life or be part of a will.
Credit Shelter Trust: is a way to take advantage of the estate tax exemptions. The amount that may be sheltered has changed considerably over the past decade and is expected to continue changing into the future. For this reason, is you already have a trust, it is wise to review the provisions with an attorney at least once every several years.
Even though a Trust is typically not subject to the probate process, these are still occasions when a trust may end up being disputed in trust litigation. Click here to read about trust litigation.
Potential trust litigation issues may include, but are not limited to:
If you have questions, concerns, or legal needs regarding trust creation, trust administration, or trust litigation issues, we urge you to seek the legal advice of experienced legal counsel.