A living trust is similar to yet distinctively separate from a will. If you don’t know much about using a living trust in Florida could be wrong, learn the basic advantages and disadvantages of taking on this responsibility.
The biggest benefit of a living trust is the avoidance of a probate. Trustees and beneficiaries do not have to go through a probate court to distribute or receive a person’s estate. Avoiding court also saves money on legal fees.
In addition, a living trust that is kept out of probate court is left out of public record. The terms of the trust, such as the amount of money distributed to each beneficiary, are never disclosed to anyone in the public.
On the other hand, there are strict legal rules for documenting a valid living trust. You must list all of your beneficiaries, your property and the owners. The document must be signed with witnesses and a notary public. Missing any one of these steps will invalidate the trust.
Estate planning also requires some amount of recordkeeping. Maintaining your records is necessary when you transfer property and want to protect your beneficiaries’ interests.
Another disadvantage is having to transfer taxes. Some states require you to pay taxes when transferring titled property to your trust.
Avoiding the myths and knowing the facts
Anyone who has thought of a living trust may have wanted to avoid going through probate, but there are other advantages to using a trust over a will. You can secure funds for one or more beneficiaries and reduce the hassles of transferring your property and assets to your most trusted family members.