What are the Advantages of Creating a Living Trust?

A revocable living trust may be created for many reasons. You may want to help heirs avoid the cost and time of probate, or perhaps avoid guardianship court for children or yourself if incapacitated. A living trust can accomplish many objectives with several advantages to consider. 

Here are some of the benefits of creating a revocable trust in Florida: 

• Avoid probate. Assets transferred to a living trust do not go through probate and instead pass directly to beneficiaries.
• Avoid guardianship if you are incapacitated. In the event something happens to you, you can avoid the court appointing someone to manage your finances with a living trust. The successor trustee you designate will instead be charged with administering trust assets according to your provisions.
• Avoid guardianship if a child receives an inheritance. Florida requires a guardian to be appointed to manage a child’s inheritance that exceeds $15,000, even when the minor’s parent is alive. A living trust can bypass this If you wish to leave a significant inheritance to a child.
• Asset protection for beneficiaries. At death, a living trust becomes irrevocable and, when created properly, offers asset protection. If the successor trustee has discretion over distributions, your beneficiary’s creditors cannot force a distribution.
• Control your assets after death. A living trust is a flexible solution. Trust assets can be immediately distributed to beneficiaries at death, or the successor trustee can make periodic distributions of income or assets according to the trust provisions.
• Protect someone with special needs or the recipient of government benefits. When someone who receives government benefits like Medicaid or someone with special needs receives an inheritance, it can count against them to qualify for many government programs. A special needs trust can be created to supplement government benefits and provide for the long-term care and quality of life of the beneficiary.

Revocable trusts are not simply a tool for wealthy individuals. People who are married, divorced, remarried, or widowed can benefit from a trust to protect assets and ensure their chosen beneficiaries receive an inheritance. Avoiding probate can save heirs great expense, stress, and time and give them access to their inheritance sooner. The trust can also be beneficial for individuals who simply want the right to choose who makes important decisions if they become incapacitated.