There are various types of estate-planning tools available for those looking to plan ahead. For those who have chosen to utilize a trust as part of their estate-planning strategies, many may be wondering when would be an ideal time to create a trust in Florida. However, most legal experts agree that, once a person has decided on using a trust, there is no sense in waiting, since trusts can be amended if necessary in the future.
People use trusts to accomplish a variety of estate-planning goals. Many use trusts to transfer assets to beneficiaries without having to go through the probate process. Although this is of considerable importance, it should not be the only factor when deciding on a trust, since there are many other ways to transfer various types of assets. For instance, one may be able to transfer stocks, various retirement accounts and mutual funds directly to beneficiaries. Also, one may directly choose beneficiaries to be named on life insurance policies and annuities.
However, if one does not wish beneficiaries to have access to assets right away, a trust can be a useful legal instrument. Trusts allow a third party to control assets and give out assets to beneficiaries gradually. This is common for those who are afraid that beneficiaries are not good with managing money and assets. For example, one may wish a third party to handle assets for a minor or disabled beneficiary.
Trusts usually contain more versatility compared to wills in Florida or in any other state. They can also be designed to include various other estate-planning tools, such as financial and medical powers of attorney. However, when creating a trust or any other estate-planning document, one must be sure to use the correct legal language. Making a mistake can cause serious problems in the future for intended beneficiaries.