As any Florida resident who has worked hard for his or her money knows, protecting assets is essential. It is all too easy for creditors or taxes to eat away at hard-earned wealth, but fortunately, there are estate planning measures that individuals could take advantage of in hopes reducing the chances of their funds being depleted by estate taxes or other issues. In particular, trusts can play important roles in an estate plan.
There are many benefits to using trusts, and the beauty of this planning tool is that there are many options and types of trusts that could help individuals achieve specific and personal goals. Some examples of trusts include:
- Martial trusts that allow one spouse to ensure a surviving spouse obtains remaining assets without tax obligations
- Life insurance trusts that allow life insurance payouts to pass into a trust, which could help avoid estate taxes
- Special needs trusts that could help ensure that a special needs loved one receives assets but without jeopardizing his or her ability to obtain government benefits
- Charitable trusts that allow the grantor to pass assets on to charities
These are only a few examples of the many types of trusts that could help people plan for specific purposes. Trusts can be either revocable, meaning the grantor can cancel or change the terms, or irrevocable, which means the grantor cannot make changes. Each has its pros and cons, so it is wise to thoroughly review information on these types before making a decision.
No one wants to see wealth meant for surviving loved ones be diminished by estate taxes or other financial obligations. If Florida residents are interested in protecting their assets from such issues, exploring their trust options may be wise. To ensure that they obtain reliable and applicable information, interested parties may want to contact experienced estate planning attorneys for assistance.