Various estate planning tools are available to people looking to plan ahead. One of the most common estate planning instruments are trusts. A trust is a separate legal entity that will legally own possessions put into the trust account in Florida or in any other state. These assets are many times held on behalf of an intended beneficiary who cannot manage the assets for himself or herself.
When creating a trust, one will have to choose the person who will be in charge of managing the assets in the trust account. This person, known as the trustee, must be chosen with care and thought. The first thing one should consider when choosing a trustee is whether this person possesses enough experience and knowledge to be able to manage the account effectively. Although the trustee may choose to hire an estate administration professional, the trustee is ultimately responsible for overseeing the actions of the hired professional.
The independence of the potential trustee should also be taken into consideration when creating a trust. This means one should investigate into whether the trustee may have a conflict of interest. One potential conflict of interest could be that the trustee could have some type of personal financial interest in the assets of the trust. Additionally, one will have to make a judgment call on the potential trustee’s character and integrity.
Along with trusts, there are also many other estate planning tools available for individuals in Florida or in any other state. For example, a will leaves behind instructions on how other assets should be distributed among intended beneficiaries. However, every situation is different and will require individualized estate planning strategies.