“Trust” Us: A Brief Overview of 5 Common Florida Trusts

There are several different types of trusts – a property that is held by one party to protect it for the beneficiaries of the property owner – although each state allows different types of trusts, depending on the statues of the state. Here in Florida, there are several trust options, but determining the right one for your needs usually requires the assistance of a Florida attorney who specializes in trusts and estate planning so that your financial assets are best protected.

Not all trusts meet every financial need, and what works for a family member may not work for you. Here, we take a look at some of the different types of trusts available in Florida to help give you an idea which trust is best suited for you to ensure that your property is protected after you pass away.

  1. Land trusts. Land trusts, which can include the family home, helps keep asset ownership private, can prevent land from becoming part of a lawsuit filed against you. Land trusts also protect property from entering probate, and makes it easier for multiple parties to own the property.
  2. Revocable living trust. The most common type of trust in Florida, a revocable, or inter vivos, trust is put into place while the grantor of the trust is alive, and can be amended or revoked at will. They can be used as a means to dispose of your assets without having to go through the Probate Court system. 
  3. Irrevocable living trusts. Irrevocable trusts are trusts that transfer assets out of the control of the property owner, so those assets become the property of the trust. The terms of an irrevocable trust cannot be changed, but it protects beneficiaries from both probate or estate taxes.
  4. Testamentary trusts. Testamentary trusts are part of a person’s Will and they go into effect at their death. Also known as Will trusts, testamentary trusts are used when someone wants to leave assets to another, but does not want them to receive those assets until a certain point in time. A grandparent who wants to leave assets to a grandchild when the grandchild turns 21, for example, would likely choose a testamentary trust to make sure that his or her wishes are fulfilled. A testamentary trust is irrevocable.
  5. Medicaid trusts. These trusts are put into place to ensure that your children will receive an inheritance even if you end up requiring long-term nursing home care. Under a Medicaid trust, assets are sheltered, and cannot be taken to cover nursing home costs. You will not have access to the funds in the trust during your lifetime.

For help determining which trust is right for you, ElDeiry & ElDeiry, PA can assist you so you understand the benefits and drawbacks of each type of trust, allowing you to be better able to make the right decision. Contact us today to schedule a consultation.

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