If you are like many Florida residents, when you think about estate planning, you might automatically think about making a will. This might well be the best thing for you to do but before you make that choice, you should take another look at your total set of assets. It is easier than many people may think to have an estate valued at $1 million or more, especially when you add in real estate and investments. So, if you find that your combined estate value may exceed this threshold, what are some of your better estate planning options?
According to Forbes, you could consider an irrevocable trust if your estate is very sizeable. This document protects any growth in the value of assets contained in the trust from being applied to your gift exclusion limit. If you own property or have a robust set of investments, this may be important for you. It is important to know that this type of trust cannot be modified in most cases.
If your estate is worth more than $1 million but not quite large enough to warrant an irrevocable trust, you could establish a living trust. You can transfer ownership of tangible items as well as liquid assets into this type of trust. There are some retirement funds that cannot be included in a living trust, however. The ability to avoid probate and to make changes to your trust until you die is a benefit of this type of trust.
This information is not intended to provide legal advice but general information about how to approach estate planning in Florida if your estate worth exceeds $1 million.