Tampa Trust Attorney

Estate planning is often associated with making a last will and testament. But a comprehensive Florida estate plan may also include one or more trusts. You might think trusts are only something the ultra-wealthy use. Just about anyone, however, can benefit from the flexibility and potential tax benefits of placing their assets into a trust.

Creating a trust is not necessarily difficult. Making sure the trust is properly structured and funded to meet your estate planning goals, however, requires careful attention to detail. This is where our Tampa trusts attorney can help. Knudsen Law is a full-service Florida estate and probate firm that assists clients in preparing, revising, and administering a wide range of trusts.

Our trust attorneys in Tampa and Pinellas will work closely with you to understand your unique circumstances and goals. We will develop a comprehensive trust plan that protects your assets, minimizes taxes, and ensures your legacy is preserved.

Understanding the Various Types of Florida Trusts

In its most basic form, a trust is a legal arrangement where a settlor (or grantor) gives property to a trustee. The trustee then holds that property for the benefit of one or more beneficiaries named in the trust documents. Some of the more common types of trusts we assist clients with include:

Revocable Living Trusts: This is perhaps the most common type of trust used in Florida estate planning. Assets in a revocable trust do not go through probate–i.e., they do not pass under the terms of a person’s will after they die. This makes a living trust an easier way to transfer property without going through formal administration. And since the trust is revocable, its contents may be amended or revoked at any point while the settlor is still alive.
Charitable Remainder Trusts: This is an irrevocable trust that pays a certain amount of income to a named beneficiary for a specified period of time. When that period ends, any remaining trust assets are paid to one or more designated charitable organizations.
Gun Trust: If you wish to jointly own or control firearms with other people, you can title ownership in a gun trust.
Irrevocable Life Insurance Trust: An ILIT holds legal title to a life insurance policy. Such trusts are often used to ensure a person’s estate has adequate liquidity to pay a potential estate tax bill.
Qualified Personal Residence Trust: A QPRT allows you to transfer your primary residence to a trustee, thereby excluding it from your probate estate, while still retaining your right to live there and take advantage of Florida’s constitutional homestead exemption.
Pet Trusts: A pet trust allows you to set aside money for the care of your animals after you are gone.
Special Needs Trusts: If a large inheritance or other sudden windfall would render a Florida resident ineligible for Medicaid or Supplemental Security Income (SSI) benefits, those assets can be placed in a special needs trust. Funds from the trust can be used to supplement the beneficiary’s care without hurting their eligibility.

Revocable Living Trust: Flexibility and Control

A revocable living trust provides flexibility for the grantor during their lifetime. As the grantor, you retain control over your assets and have the ability to modify or revoke the trust as long as you are mentally competent. Upon your death or incapacitation, the trust becomes irrevocable, and the assets are distributed according to the instructions in the trust document. By avoiding probate, a revocable living trust ensures a seamless transfer of assets and privacy for your loved ones.

Irrevocable Trust: Protecting Assets and Reducing Taxes

An irrevocable trust offers asset protection and potential tax benefits. Once created, this type of trust generally cannot be modified or revoked without the consent of the beneficiaries. By transferring assets out of your estate, you may reduce estate taxes and protect those assets from potential creditors. Various irrevocable trusts, such as irrevocable life insurance trusts (ILITs), charitable trusts, and asset protection trusts, provide tailored solutions for specific needs.

Testamentary Trust: Managing Assets and Protecting Beneficiaries

A testamentary trust is established through your last will and testament, taking effect upon your death. It allows you to specify how your assets should be managed and distributed, ensuring the well-being of your beneficiaries. Testamentary trusts are particularly valuable when minor beneficiaries or beneficiaries with special needs require ongoing support and management of their inheritance

Special Needs Trust: Ensuring Care and Preserving Benefits

A special needs trust, also known as a supplemental needs trust, provides for individuals with disabilities while preserving their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). This trust structure allows for the use of trust assets to enhance the beneficiary’s quality of life without jeopardizing their essential assistance programs.

Charitable Trusts: Supporting Causes and Receiving Tax Benefits

Charitable trusts offer a way to support charitable organizations or causes while potentially receiving tax benefits. Examples include charitable remainder trusts (CRTs) and charitable lead trusts (CLTs). These trusts allow for the distribution of income or assets to both charitable organizations and beneficiaries over a specified period, aligning your philanthropic goals with your estate planning.

Contact An Experienced Tampa Trust Attorney Today

Each type of Florida trust has its own unique requirements with respect to creation and administration. It is therefore essential that you work with an experienced Tampa trusts attorney who can guide you through the process. Secure your assets and shape your legacy. Contact Knudsen Law today to schedule a consultation with our knowledgeable Tampa trusts lawyer. Contact Knudsen Law today at (727) 398-3600 to schedule a consultation. Build your future with confidence.