A New Year is beginning, have you resolved to think about your estate planning strategies, especially on Florida probate avoidance? Often people think that creating a last will and testament is all that is needed to avoid the probate process. Unfortunately, this is not correct. So to be sure that there is a straightforward and well planned transfer of your assets at the time of your passing, you might want to think about other strategies, for example, a trust agreement.
Does all this information on probate avoidance seem confusing? We can help you understand the limits of a will-based Florida estate plan. It is absolutely true that a last will and testament is a fundamental component of your Florida estate planning. It allows you to outline your wishes regarding the distribution of your assets and the care of any minor children. That being said, your will alone does not avoid probate.
So, what is probate? In Florida, probate is the legal process through which a deceased person’s will is validated and their estate is administered. As the probate process begins both known creditors are contacted and heirs are informed of what will happen under the will. Be aware that this process can be time-consuming, expensive, and public, which is why many individuals want to find ways to avoid it.
What about a trust? A trust is a legal arrangement where assets are held by a third party, the trustee, for the benefit of others, often the beneficiaries. The key advantage of a trust is that assets within a trust are not subject to probate. This means they can be distributed to beneficiaries without the delays and costs associated with the probate process. As you can see, one of the purposes of using a trust agreement as a part of your estate may be to avoid probate.
Are there more than one type of trust? Yes, in fact, there are various types of trusts, but they generally fall into two categories: revocable and irrevocable. With a revocable trust you can keep control over the assets during your lifetime and make changes as needed. However, with an irrevocable trust, once it is established, in most circumstances it cannot be altered. This allows the irrevocable trust to offer potential tax benefits and protection against creditors. We highly recommend that you have this discussion about trusts with your experienced Florida estate planning attorney. She can guide you and discuss the use of both of these types of trusts to reach your goals.
Now, be very aware, creating a trust agreement is only the beginning. In order to be successful, your trust must be properly funded. What does this mean? It means that you must transfer assets such as real estate, bank accounts, and investments into your trust agreement. Keep in mind that failure to fund your trust adequately can result in those assets going through probate, defeating the purpose you had for the trust.
We are a Florida estate planning law firm and we know how to navigate the complexities of trust agreements and estate planning. It is definitely not a do-it-yourself task! Again, we recommend that you take time in the New Year to work with an experienced Florida estate planning attorney. Your attorney can provide specific advice based on your unique circumstances, help you understand the different types of trusts available, and be sure that your trust is properly structured and funded so your goals can be reached.
Finally, even though a Florida last will and testament is a critical document, by itself it will not avoid probate. However, a well-structured and adequately funded trust agreement can provide a more efficient and private transfer of assets. As you begin the New Year, resolve to take this time to review your estate planning strategy with an experienced Florida estate planning attorney to feel confident about your and your family’s future financial security.
We know this article may raise more questions than it answers. At Britton G. Swank, P.A., our mission is to guide you in the right direction to help you provide for yourself and your loved ones no matter what the future holds. We want to help you control the assets you have, leave them to people and causes you care about, when you want, in the way you want. We can help you take care of yourself and those you love in the event of disability due to illness, injury or old age. No matter what risks unfold, we can help give you the comfort of knowing you are prepared. We want you to feel good about your future and the future of your loved ones. We encourage you to contact us and schedule a meeting.