Florida residents have many options to consider when developing future estate plans. Many people choose to utilize trusts for this purpose. CNN Money explains that there are two primary types of trusts. In contrast, a testamentary trust can be outlined as a provision of a will and then become effective upon death. An inter-vivos truss, also referred to as a living trust, takes effect upon creation even while the person is still living.
Given that there are a large number of estate planning services to choose from, it is important that you have a clear understanding of the different processes that are available and how they function. For instance, you may be considering establishing a trust fund of some sort, but may be confused about the two types that are offered. Provided below is a brief introduction to testamentary and inter vivos trusts, as well as an explanation of their similarities and differences.
Many people in Florida and around the country understand the significant advantages of putting assets into a trust. Part of that process will include appointing a trustee to oversee the wealth and property held in the trust. While some choose an individual such as a spouse or friend, others opt for a corporate trustee.
Creating a will or a trust is often the first step in estate planning – and one that many people in Florida and around the country fail to take. In fact, Forbes magazine reported that in 2010, only 35 percent of people surveyed had made plans for the distribution of assets.
It’s understandable that parents or grandparents want to be sure their loved ones’ needs are taken care of after they pass on. A common way for Fort Myers residents to leave an inheritance for their heirs is by setting up a trust fund. There are many ways that trusts can be beneficial to recipients. Contrary to popular belief, a family does not have to be wealthy to set up a trust. Trusts can be especially useful if the grantors would like to be sure their children or grandchildren are left with an inheritance but do not misuse the funds.
For many people living in Lee County, Florida, their pets are just like family. If your pet falls into this category, it makes sense to plan for its care in the event you become ill or pass away. It is a good idea to make your wishes known regarding your pet in your last will and testament. This way you can be at peace knowing that your beloved animal will be cared for properly after you are gone or unable to care for your pet yourself.
In Lee County, and elsewhere, in order to be legally valid, either the will has to be witnessed being signed by at least two people or it must be hand-written by the person himself or herself. When, for one reason or another, these requirements are not met, or there are questions about the way they were met, it could lead to problems with probate and fulfilling the last wishes of the decedent.
Readers in Lee County are likely aware that, when a person passes away, a portion of the assets, properties and other resources that make up their estate are subject to estate taxes. For the very wealthy, estate taxes can be quite hefty and cost beneficiaries a large portion of their inheritance. The rate can reach up to 40 percent for couples with a net worth of at least $10.5 million and individuals whose estates are worth as much as $5.25 million.
Planning how your Lee County estate will be divided up after you pass does not have to be complicated, but you do want to put some time into thinking things through. What will happen to the money if one of your beneficiaries dies shortly after they receive the inheritance? Are you okay with their family members receiving it? If you are not, you may want to consider putting that money in a trust. This way, the person you would like to see benefit from your estate will, and after he or she dies, the remaining funds will be directed to another person of your choosing.