Posted on

ESTATE PLANNING-TO TRUST OR NOT TO TRUST?

 ESTATE PLANNING -TO TRUST OR NOT TO TRUST?

Do you need a trust? Can a trust help you? This is a very good question as each person’s situation is different. Trusts are great for people with small children, limiting access to money, preventing guardianships for the parent and children, and offering certain protections.

 

WHEN IS A TRUST A MUST?

A trust is a must when there are minor children involved. Minor children are those under 18 years of age. In the case of a single or divorced parent, a trust can protect the minor children from inheriting too much too soon and avoiding guardianships for both the parent and children. For example, if a single parent owns her home in Miami Beach, Florida, she can hire an attorney in Miami Beach, Florida to create an estate plan which would include health care documents, a power of attorney, and a revocable trust and will. She may transfer the house and all of her other assets into a revocable trust. The homestead exemption is still valid and the minor children are now protected.

 

WHAT OTHER ASSETS CAN BE PLACED INTO A REVOCABLE TRUST?

Shares of a business, bank accounts, investment accounts, and investment real estate may also be put into a revocable trust. Trusts are great for people with small children, limiting access to money, and offering certain protections. One of my clients wanted to protect his grown daughters from future spouses and possible future divorces and thus placed the monies in trust for their benefit until age 65. Their health, maintenance, and welfare will be taken care of completely but the monies will remain in a protective trust until they turn 65.

 

ARE THERE ANY SITUATIONS WHERE YOU MIGHT LEAVE AN ASSET OUTSIDE OF TRUST?

A person might leave an asset outside of trust when they want it to go to the intended beneficiary directly. For example, a client put her home in her trust, but left the retirement and bank account directly to her only brother. Sometimes an IRA or retirement account will be left directly to a paid upon death beneficiary to save on taxes and allow for more flexibility regarding distributions. When this is done, I recommend placing alternate beneficiaries on these accounts to safeguard the monies be handled outside of probate.

 

WHY SHOULD YOU USE ALLY GLASER, PA?

As an Estate Planning, Probate, and Trust Attorney in Miami Beach, Florida, I have over twenty years of experience and handle these matters with the sensitivity they deserve. My psychology degree, law degree, and years of experience allow me to handle all clients matters with the proper care and attention to detail. Call or email me today to get started on your personalized estate plan, trust administration, or probate matter.