Miami Living Trust Lawyer

Exploring the Benefits of Living Trusts in Your Estate Plans

Far too few of us in Florida have taken the time to establish an estate plan. And even among those who have, they’ve rarely gone beyond the steps of drafting their last will. There are, however, additional estate planning tools to consider, like living trusts.

A living trust, sometimes known as an inter-vivos trust, is a commonly utilized estate planning tool in Florida. There are several benefits to consider in a living trust, but a living trust is not for everyone. Similarly, depending on your situation, there may be other trust types to consider.

At Perez-Roura Law, we have years of dedicated experience in estate law, and we would be proud to assist you in your pursuit of establishing a living trust. Or, if you have questions and concerns about a living trust, we can also lend you the necessary legal guidance on whether a living trust is right for you.To learn more about living trusts and the legal services offered by our firm, please contact our Miami law office to schedule your free consultation today.

What is a Living Trust?

Unlike a will, which serves its purpose through the probate process after the death of its creator, a living trust, as its name suggests, can benefit its owner while they are still alive and after death.

The trust’s creator can put various assets and real property into the trust for the benefit of their named beneficiaries. Additionally, the trust creator can also benefit from the creation of the trust.

During the lifetime of the trust creator, a trustee administers and invests in the trust while potentially allowing the trust creator to withdraw assets from the trust according to the language of the estate plan document. If the trust creator becomes incapacitated, the appointed trustee has the authority to continue to manage assets, invest in the trust, pay necessary taxes, and so on. As a result, there is no legal requirement for court-ordered guardianship.

After the trust creator dies, the trustee (or successor trustee) has the responsibility to pay all necessary bills and distribute the inheritance to each named beneficiary and heir.

Any asset or property that is not transferred into the trust before the grantor’s death will need to go through the lengthy and sometimes difficult probate process. Don’t wait; transfer the property to the trust today.

Who Are the Parties Involved in a Living Trust?

There are multiple parties involved in the creation of, management of, and benefit of a living trust.

The trust creator is also known as the trust grantor or settlor.

The trustee (also sometimes called the executor) is the named individual responsible for the administration of the trust. Granted great responsibility, the trustee also has the potential for personal liability in their role as fiduciary. If a trustee acts in their own self-interest and against the best interests of the trust or its beneficiaries, they could be held accountable for a breach of fiduciary duty and subsequently removed. A trustee could also be the grantor. If the initial trustee passes away or relinquishes their duties, a successor trustee takes their place.

The beneficiaries of the trust are those named by the trust document who will directly benefit from the trust distribution of trust assets. Beneficiaries and heirs may often be children, a spouse, minors dependent upon the trust, parents, other close family members, and close friends.

Finally, a trust protector is a third party or institution given the responsibility to perform certain duties for the trust. Among their duties is to ensure that the trust is being managed according to the grantor’s wishes and that the fiduciary has upheld their duties.

What Are the Benefits and Drawbacks of Living Trusts?

There are both pros and cons of living trust.

Benefits of establishing a living trust include:

• A trustee can administer the trust if the grantor is ever incapacitated or dies.
• All assets included in the trust can avoid probate.
• It avoids the necessity of a court-appointed guardian if you are ever incapacitated.
• There may be tax advantages.

 

Among the drawbacks of a living trust, there are a few, including:

• Depending upon the structuring of your living trust, the assets within the trust may not be protected from creditors or judgments made against the grantor. In certain circumstances, the courts will view your trust as an extension of your personal property.
• If you wish to protect your trust property, you may need to create an asset protection trust. Creating several trusts can be expensive.
• Establishing a trust can be a complicated process, one that is unwise to do without the legal representation of an experienced estate planning attorney.

What is the Difference Between a Revocable and an Irrevocable Trust?

A revocable trust is a type of living trust wherein the assets locked away within the trust are easily accessible to the grantor. Revocable living trusts are also easily modified. Because of this, the assets within the trust are considered parts of your property and may be vulnerable to creditors and claims against your estate.

An irrevocable trust is a type of trust that cannot be modified by the trust granter without the express consent of every beneficiary of the trust. While an irrevocable living trust can still benefit you while you are alive, it is not easily modified. However, it does protect your assets better against creditors and claims against your state.

Schedule a Free Consultation with an Experienced Living Trusts Attorney Today

While it is not legally required for you to retain professional legal counsel to create your trust, it is nonetheless highly recommended that you do so. Trusts can be complex and costly, especially if you don’t know exactly what you’re doing. It’s okay to feel confused and maybe a little overwhelmed by the steps required to create your trust. That’s why help is available in the form of trust attorneys.

Our law firm, led by trusts lawyer Pedro Armando Perez-Roura, is highly adept at handling complex estate plans for the benefit of their creators and the beneficiaries. Whether you are a trustee who needs help with the management of a trust, the trust granter wanting to establish a trust, or a beneficiary concerned about the management of a trust, we can lend valuable legal assistance.

Contact our Miami law offices to schedule your free initial consultation today. 305-570-3259.