Who Needs A Trust?
Trusts having many uses for people of all income levels, no longer just the very rich “trust-fund” folks. Living trusts, also known as inter vivos trusts, are becoming increasingly popular due to their ability to help families avoid probate and streamline the transfer of assets to the next generation. The following types of trusts are commonly used for estate planning in Florida:
- Revocable Living Trust: This is by far the most common type of estate planning trust. This trust is formed while a person is alive and can be amended and revoked at will. Assets placed in a revocable living trust pass to beneficiaries privately, bypassing probate.
- Medicaid Trust: This is an option for seniors that are at risk for losing their assets if they require long term residential care. A person can become eligible for Medicaid by forming an irrevocable trust, permanently losing all control of their assets, but retaining the right to utilize them. The trustee can make payments for the benefit of the grantor, including rent, food and vacations.
- Special Needs Trust: This is similar to a Medicaid Trust with the goal of allowing a disabled beneficiary to continue to qualify for Medicaid, SSI and/or SSD and also make use of an inheritance. The beneficiary cannot have any control over the money, but a trustee can allow for payments to benefit their lifestyle.
- Testamentary Trusts: This type of irrevocable trust is useful for leaving assets for minors such as grandchildren that are not yet 21 years old.
There are many other types of trusts that could benefit your family and various ways to set them up. It’s important to consult with an experienced Florida trusts attorney to help you develop an estate plan.