A trust is another form of Estate planning where a Trustor (also known as the Grantor) gives assets to a Trustee who then has a fiduciary duty to hold and manage the assets for the beneficiaries of the Trust. At the death of the Trustor or Grantor, the assets are then given to the beneficiary outright or can remain in trust and given to beneficiaries at certain ages or times in their lives.

The trust instrument must be in writing and signed with certain formalities required by law. Make sure you retain an experienced Miami Trust Lawyer or Ft. Lauderdale Trust Lawyer to prepare the appropriate documents. A trust is a good way to avoid probate and it is also a good way to manage assets that are being held for a minor or someone who is otherwise incapable of managing it themselves. In order to use this trust vehicle, assets must be transferred into the trust and this is done by renaming or retitling assets in the name of the trust.

There are 2 types of Trusts; Irrevocable Trusts and Revocable Trusts. They each have their pros and cons and we will be able to assist you in determining which is best for your particular situation.

In a revocable trust, funds stay in the grantor’s estate, whereas in an irrevocable trust, they move out of the estate (and belong henceforth to the beneficiaries.) Additionally, a revocable trust is one that can be changed at any time; an irrevocable trust is one that cannot be changed by the grantor unless all of the beneficiaries consent and it is approved by the court.

Revocable trusts can be changed whenever you want and there is less risk if, at a later date, funds need to be accessed. It also means that all of the assets, although technically in the trust, still belong to the grantor since the grantor has full access to those funds. Therefore, creditors are able to access those funds to get paid, and if the grantor is sued, those assets are at risk.

An irrevocable trust as mentioned previously cannot be changed. The only way it can be changed is if all of the beneficiaries agree and if the court consents. Although the trust’s flexibility is limited, since it is irrevocable, on the other hand, this can be a good vehicle to protect these assets from creditors if the grantor is sued.

We at Kreutzer Law Offices look forward to being your Miami Trust lawyers or Ft. Lauderdale Trust lawyers depending on where you reside.