Moran & Associates is a trust law firm in Palm Beach, Florida that can assist you with the creation of a trust as part of your estate plan. Trusts are used by individuals and families as part of their estate planning process when they want to avoid probate, obtain protection for beneficiaries from creditors, predators, and provide inability and disability protection for themselves, as well as reduce certain estate taxes.
With a trust, your family may not only have access to your assets more quickly than if your assets were passed to your beneficiaries through a will, but also have creditor and predator protection via keeping certain assets in trust for your beneficiaries and dispersing it over time. Further, in the unexpected event of incapacity or disability, a trust can avoid the expensive and unnecessary cost of an incapacity proceeding and guardianship, which drains assets from the estate.
The benefit of a trust is that it can save your family money and time when it comes to taking a will to probate, and it can allow you to pass your assets on to your family without the added burden of court fees, court dates, and other costs. A trust also gives you added control over when assets are distributed to your loved ones, which can help you budget how your legacy unfolds long after you pass away.
When it comes to deciding whether to use a trust or a will as part of your estate plan, having a trust lawyer to guide you can be helpful. Moran & Associates is a trust law firm in Palm Beach, Florida that can evaluate your financial situation and help you decide what the next steps can be for your estate plan. Contact our firm today for guidance.
What are Some Benefits of Using a Trust for Your Estate Planning?
There are many benefits to establishing a trust as part of your estate plan. One of the benefits of establishing a trust is the added control it can provide you. With a trust, you can decide when your beneficiaries receive your assets, how much they receive over time, and you can even set certain conditions that must be met before your assets can be distributed.
So, if you have children and are worried that they might spend all your wealth if they inherit it all too early, or if you have a family member with special needs who requires additional oversight of assets and distribution, a trust is an excellent option that offers you added control over your legacy. With a will, your beneficiaries get everything at once and they can then do whatever they want with the money. With a trust, you can stipulate where the money goes, to whom it goes, and a time frame for distributions and access.
Another benefit of using a trust as part of your estate planning process is the added privacy it provides you and your loved ones. When a will goes to probate, everything can end up on the public record, meaning that the public can find out information about the value of your estate and assets. With a trust, everything is handled privately. Finally, with a trust, you can reduce the costs of probate and help your loved ones reduce their estate tax burdens.
There are different types of trusts you can establish. The two primary trust options available are revocable trusts and irrevocable trusts. With a revocable trust, you continue to have control of the property while alive, but you can also name beneficiaries to take over the trust should you become too sick to manage your accounts or should you pass away.
With an irrevocable trust, property and assets are no longer under your control, and the trust cannot be changed. Irrevocable trusts can help you reduce the value of your estate for estate tax purposes, protect assets from creditors and lawsuits, and help you or a loved one meet Medicaid eligibility requirements.
These are just some of the trust options that may be available to you and your family. There are many different types of trusts available. The key thing to keep in mind with a trust is that they can cost more to establish and will require some costs to maintain over the lifetime of a trust. But for some estate planning purposes, these costs may be worth the benefits.
That said, a trust might not be the best option for all estate plans. If you don’t have many assets, need to establish a trust for a disabled loved one, or if your estate tax burdens are likely to be low, a trust may not be required. Ultimately, working with a trust lawyer in Palm Beach, Florida like Moran & Associates can help you understand which type of estate plan might be best for you.
Special Needs Trusts in Palm Beach, Florida
A special needs trust is a special type of trust that protects your disabled loved one’s ability to continue to access Medicaid and Supplemental Security Income while also receiving funding from your estate. If your loved one receives Medicaid or Supplemental Security Income, any inheritance could potentially affect his or her eligibility to continue to receive these benefits. A special needs trust is one way that you can still pass on your wealth to your disabled loved one without putting his or her benefits at risk. Because a trust is not actually owned by your loved one (your loved one is a beneficiary), your loved one doesn’t risk losing Medicaid and Supplemental Security Income if he or she is a named beneficiary on a special needs trust.
A special needs trust can provide for aspects of your loved one’s care that might not be covered by Medicaid and Supplemental Security Income. This can include dental expenses, medical expenses, travel expenses, or expenses for sundries or other items that your loved one may not be able to obtain solely under Medicaid or Supplemental Security Income. There are restrictions on whether a special needs trust can fund certain aspects of your disabled loved one’s lifestyle (for example, money from the trust cannot generally cover food or housing expenses), so it is important when writing these trusts to consult with a Palm Beach, Florida trust lawyer at Moran & Associates: Attorneys at Law.
Special needs trusts can be a wonderful way to ensure that your disabled child receives the assistance he or she needs. Rather than giving the money to a sibling or other family member to administer, the special needs trust ensures that the money will go to your intended beneficiary. Special needs trust assets are irrevocable in nature, meaning that they are also a form of asset protection. They cannot be accessed by creditors.
A special needs trust is designed to protect a mentally or physically disabled person. If you are not sure whether your loved one qualifies for a special needs trust, or needs a special needs trust, consider reaching out to the Palm Beach, Florida trust lawyer at Moran & Associates: Attorneys at Law. Our trust lawyers are here to help you every step of the way.
Let Us Help You with Your Trust
Moran & Associates is a trust law firm in Palm Beach, Florida that understands that each family’s estate planning situation will be unique. The type of trust you’ll need to establish will depend largely on your family’s needs. Consulting with a trust lawyer before you make a decision about which trust to use is a wise course of action.
Special needs trusts are just one type of special trust you may need. Families may also require other special trust structures given their family’s unique needs. Some individuals choose to manage when and how assets will be distributed from a trust to manage their loved one’s access to assets and spending habits. Some trusts are designed to ensure that young children can benefit from an estate while also ensuring that then children won’t have access to the money before they are able to manage it themselves.
Putting in place a trustworthy trustee to manage your trust is also important. When established correctly, a trust can save you and your family money in taxes and probate expenses. It is important to establish a trust correctly, and to take into account other aspects of your estate unable to be included in a trust.
Most people who use a trust as part of an estate plan also have a will in place and other estate planning documents to protect the entirety of their estate. Moran & Associates is a trust law firm in Palm Beach, Florida that can help you take all these factors into account.
It is never too soon to begin estate planning. A trust is just one estate planning instrument that may be able to help you plan for the future. Trusts aren’t right for everyone. Some families will only need a will. Others may require more complex estate planning instruments. The trust lawyer in Palm Beach, Florida at Moran & Associates: Attorneys at Law is here to help you navigate the estate planning process and assist you with your estate planning needs.