There are many advantages of setting up a trust in Florida. It is not something that is limited to those individuals who are wealthy. Meeting certain circumstances and having a net-worth of $100,000 or more is reason enough to look into the benefits of a trust. However, even a basic trust plan can be complex and expensive, so it is important to evaluate the situation before making a decision.
There are several financial circumstances that benefit from a trust. If a large amount of an individual’s total assets are held in real estate, a business or an art collection, a trust plan may be the best course of action. Also, if there are specific stipulations that need to be made about the distribution of assets, such as the meeting of certain conditions or disbursement of funds among several heirs, a trust may be the most viable option for ensuring that matters are handled correctly.
Trusts allow for the maximization of tax exemptions and can help avoid the substantial fees associated with probate court and the publicity and delays that are inherent. They also allow for better protection of assets from creditors or potential lawsuits. The flexibility and complexity of a trust provides the option to name successors who have the power to manage assets in the event of extreme disability or mental incapacity.
An attorney may help facilitate the necessary estate planning documents and ensure that the process proceeds smoothly. Because of the complexity and variety of trusts, an attorney with experience and knowledge in probate, estate administration and wills may be necessary in order to secure financial assets for future generations. Employing such an attorney may be both essential and beneficial in certain situations.
Source: CNN Money, “Estate planning: Is a trust beneficial?“, November 16, 2014