One of the most popular forms of asset protection in Sarasota is through a trust. There are different types of trusts, and you need to be aware of which each one does and doesn’t do, especially in the state of Florida. When asset protection is the goal, not all trusts protect your assets. This will help you to gain understanding of asset protection in Sarasota.
Revocable Living Trusts
- In Florida, a revocable living trust will allow someone to follow out your wishes in the event you should become mentally incapacitated.
- It will also allow someone to follow out your wishes in the event of your death.
- It will allow your estate to avoid being sent to probate, which allows your private matters to be kept quiet by keeping it out of the court.
- This also allows for a quicker settlement of the estate, and less of a burden on your family members.
- This means that all of your paperwork needs to be in order, all payments have to have been made, and that all beneficiaries are up to date.
- It does not protect your assets from creditors while you are living.
- They can be amended or canceled at any time.
- Irrevocable trusts on the other hand can protect your assets while you are living.
- They can be part of your estate planning to aid in reducing your estate taxes
- They are also designed to avoid costly gift taxes.
- It’s important to note that once assets are moved into an irrevocable trust, they can’t be moved out, hence the word irrevocable.
- The designated trustee is in charge of, and responsible for the irrevocable trust, not the beneficiary.
An important but sometimes neglected responsibility in administering an estate is to look for opportunities to preserve assets for distribution. Reducing estate taxes is one way that an estate can retain more of its wealth for the decedent’s heirs. We are knowledgeable estate planning attorneys in Sarasota and Venice. Contact us today to learn more about estate planning.