As Florida residents age, one of the things they need to consider is what they want to happen to their assets after they die. An option that people may not initially consider is a trust. This can have many advantages when used in addition to a will and can clear up many concerns that often arise about personal assets.
A trust is an arrangement that places money and other assets in the care of a third party. Fidelity says one of the primary reasons to consider a trust is the control it provides. The terms can be set so that assets may only be withdrawn by certain people or at certain times, ensuring that the deceased’s assets go exactly where they are intended. A trust also helps assets stay private, as a probate court may not be needed. This can result in fewer estate taxes and may help assets to be released faster.
There are many different types of trusts, all designed to deal with assets differently. According to CNN, a generation-skipping trust is designed to benefit grandchildren. The terms may be dictated so that the assets go to specific things the grandchildren will need. A credit-shelter trust allows a trust to become tax-exempt after a certain financial investment has been made, regardless of how much money is added.
People considering a trust will want to look into all of the details. Even if a will already exists, a trust requires that all assets receive a title, or a probate court may be necessary after the trustee’s death. Implementing and changing a trust may require a fee.