What is a Trust?
“What is a trust? Like a will, a trust is a legal creation and an important part of a successful estate plan,” said Florida attorney L. Reed Bloodworth, Founder and CEO of Bloodworth Law. “Its purpose is to hold assets for beneficiaries.
“Trusts are traditionally used to minimize estate taxes and avoid probate court, among other benefits as part of a well-crafted estate plan.”
There Are Many Types of Trusts
“There are many types of trusts including revocable trusts, irrevocable trusts, and living trusts,” said Reed who is located in Orlando, Florida, with offices in Winter Haven, Florida.
“A trust is a fiduciary arrangement that allows the trustee to hold assets on behalf of the beneficiary or beneficiaries.
“Trusts can be arranged in many ways and can specify exactly how and when the assets pass to beneficiaries. The type of trust defines who controls it and how and when trust funds may be accessed and used.”
What is a Revocable Trust?
In a revocable trust, the grantor controls the trust and controls those assets for his or her lifetime. It is revocable — it may be changed during the life of the trustor.
What is an Irrevocable Trust?
In an irrevocable trust, the grantor puts items into the trust but relinquishes control of those assets. A trustee manages the assets for the duration of the trust.
What is a Living Trust?
In a living trust, a trust is created while the grantor is alive. Unlike a will, a living trust passes property outside of probate court.
Why Are Trusts Beneficial?
Trusts are very beneficial in terms of estate planning. A trust is another method of estate transfer—a fiduciary relationship in which you give another party authority to handle your assets for the benefit of a third party, your beneficiaries.
The Bloodworth Law Estate Planning Team handles probate, guardianship and estate planning services for clients across Florida in the city and courts where you live.
When you have questions about trusts or estate planning, talk to an experienced trust or estate litigation attorney to help you or your family.Consider sharing this post