Some may rely on trusts to protect assets, others rely on trusts for protecting their family, and others rely on trusts to ensure they are financially stable. Here is the thing: all of these situations require different trusts, as different types of trusts help you accomplish different goals. There are several types one can consider while living the state of Florida.
Revocable Living Trusts
As the name suggests, a living trust (also known as an “inter vivos” trust), which is created while the grantor is still alive. It is used to house assets to be maintained by a trustee on the behalf of the beneficiary. It is “revocable” because the grantor can change the terms of the trust at any time.
Irrevocable trusts take control of the property from the grantor once the trust is put in place. The assets placed in this trust are no longer the property of the grantor OR the beneficiary — they are the property of the trust. They are a great resource for estate planning, as they allow property to pass to beneficiaries without having to worry about probate/estate taxes.
Irrevocable trusts can also be broken down into more categories. Medicaid Asset Protection Trusts house assets while preserving eligibility for Medicaid/Medicare. Special Needs Trusts provide for special needs individuals without raising their income or net worth above the limits for governmental assistance programs.
A testamentary trust goes into effect upon the death of the grantor. They are perfect for someone who wants to transfer assets to their beneficiary with additional conditions for receipt of trusts. They are also irrevocable.
The best way to figure out which type of trust is best for you or a loved one is to work with a qualified Florida elder law attorney. That way, you can rest easy knowing your case is in good hands.