Trusts Specially Tailored To Meet Your Financial Goals
Trusts are a fundamental component of estate planning and financial management. They can be used in conjunction with a will. Trusts are legally established entities allowing a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.
The primary reason that many individuals choose to put their assets into trusts is to avoid the probate process. In addition, they can provide taxation benefits, allowing your heirs to retain a larger portion of their inheritance. At Every & Stack, our estate planning attorney in Daytona Beach, Florida, can guide you in selecting the trust structure that best aligns with your legacy-related needs.
Types of Trusts: Choosing the Right Instrument for Your Legacy
- Revocable trusts. The trust’s grantor is the person or entity that establishes and funds the trust. As a grantor, you can control your assets and revoke or revise this trust anytime. However, this trust is countable when applying for Medicaid and is subject to the claims of creditors.
- Irrevocable trusts. Once established, this type of trust no longer belongs to you, and you can only amend the trust with your beneficiary’s consent and the court’s approval. The assets in an irrevocable trust are not countable when applying for Medicaid assistance and are not subject to the claims of creditors.
- Credit shelter trusts. (CST): This type of irrevocable trust is also known as a Bypass or AB trust. It is created upon a spouse’s death and funded with their estate. Those funds are held apart from the surviving spouse’s estate and pass tax-free to beneficiaries upon the death of the surviving spouse.
- Generation-skipping trusts. (GST) Also called a dynasty trust, this irrevocable trust permits a grantor to convey a substantial amount of tax-free money to beneficiaries. It is an excellent way to provide a legacy for your grandchildren. However, the recipient of this trust does not have to be a family member; it can be anyone who is at least 37 ½ years younger than the grantor and fulfills specified requirements.
- Irrevocable life insurance trusts. (ILIT). This trust removes a grantor’s life insurance from the taxable estate. It is an excellent way to leave a tax-free legacy to loved ones.
- Qualified terminable interest property trusts. (QTIP). A QTIP trust is irrevocable. These trusts assist grantors in second marriages to meet the ongoing financial needs of their second spouse while securing an inheritance for beneficiaries from the first marriage.
Trusts are flexible instruments and can accommodate any financial situation. In addition to the above, other types of trusts are Totten, Testamentary, Charitable, Spendthrift, Special Needs, and more. It is important to consult with an experienced estate planning attorney to determine the appropriate trust for your needs. At Every & Stack, we can collaborate with you to design a trust uniquely tailored to your specific estate planning goals.
Your Trusted Partners in Trust and Estate Planning
At Every & Stack, our dedicated and experienced trust attorney is committed to providing you with the highest personalized service. Trust planning is crucial to securing your financial future and protecting your loved ones. We are ready to help you create a trust, update an existing one, or navigate the complexities of trust administration after the passing of a loved one. Your peace of mind is our top priority.
Contact Every & Stack online or call us for a Free initial consultation at (386) 255-1925. Our office location is Daytona Beach, Florida. We proudly represent clients in Daytona Beach, New Smyrna Beach, and throughout Central Florida