Florida readers are aware of the importance and benefit of having a strong estate plan in place. The factors that make up a strong estate plan vary greatly on a case-by-cases basis, depending on goals, needs and more. For some people, drafting a trust is a beneficial step.
A trust is a way that a person can set aside and protect assets for a specific reason. There are various types of trusts, and the right one for you depends on what you hope to accomplish with your assets and money in the future. If you believe you may need more than just a simple will, it can be beneficial to learn more about the different types of trusts.
Which trust is right for your estate plan?
A trust is something that you can create in your lifetime that could have significant benefits and impact after you pass away. Trusts can be a useful tool to allow you to protect certain assets from taxes and misuse. Some of the types of tools you may consider include the following:
- Charitable trust: A charitable trust allows you to set aside money and assets to go to a charitable organization after your passing. This type of trust can lower or eliminate the possibility of taxes associated with financial gifts.
- Special needs trust: If you have a special needs child or care for a special needs loved one, this trust can allow you to protect money for his or her daily needs, as well as medical care, housing and education.
- Asset protection trust: This type of trust can allow you set aside assets and protect them from creditors in the future. Many people set up these types of trusts outside of the United States.
It is smart to regularly evaluate and update your estate plan after significant life changes, including remarriage, death in the family and divorce. If you need to draft a trust, it is prudent to take quick action to get the plans you need in place as soon as possible.
Estate planning for the future can start today
It is never too late or too early to start planning for your future and how you will care for beneficiaries in the years to come. A complete evaluation of your case can help you understand how to move forward with the most appropriate steps to ensure you have the right protections in place. This can provide you and your loved ones with peace of mind and security for the future.