Any adult in Florida could benefit from creating an estate plan. Even if a person does not have a substantial amount of wealth, reasons still exist to create a plan that will effectively pass on assets or protect assets as the individual sees fit. In particular, many people believe that they have no reason to create a trust as part of their estate plan, but that may not be the case.
Trusts can be used for a variety of reasons, and those reasons do not always directly apply to only the wealthy. If individuals have remarried, want to protect assets from creditors, have concerns about estate taxes and more, creating a trust could be beneficial to them. Even if a person simply wants to have more control over how his or her assets are distributed, this planning tool could help.
Some specific ways trusts could play a role in an estate plan include:
- Ensuring that children from previous marriages will receive assets in the event of their biological parent’s passing
- Keeping assets out of the reach of creditors in the event of business liabilities, divorce, lawsuit settlements or other similar situations
- Providing assets for a child with special needs without putting his or her government benefits at risk
- Reducing the amount of estate tax that surviving family may have to pay out of the remaining estate
The exact uses of a trust in an estate plan can vary depending on the specific needs and wishes of the individual. Fortunately, this planning tool has numerous types and can fit a variety of scenarios. Florida residents who want to learn more about how this option could help them protect assets and provide for their loved ones may want to contact experienced estate planning attorneys.