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Andrew Curtis, Esq.
Stephen D. Wolfe, CSA
Bryan M. Plonsky, CSA
Jonathan J. Williams, MBA
Marilyn Temple, BS
Carol Goldberg, BSW, CLA
What happens if I die without a will?
Sometimes people have the misconception that if one dies without a will that their assets will pass on to the State. This is rarely the case. If a person dies without a will, the state establishes a will for them. The State takes into account a spouse, children, and other relatives. This may or may not be how a person would choose to have their estate distributed
Do I need a will if I have a Living Trust?
Yes, it is a special “Pour-Over” Will used to distribute miscellaneous personal effects and other assets not otherwise placed in trust. This is also a “safety net” in case any assets are overlooked.
If I transfer my home to my Living Trust, will I lose my Homestead Exemption?
No, if the deed is done properly.
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Wills and Trusts
There are various types of trusts that can assist with estate planning.
1. A Revocable Living Trust performs a similar function as a will. They are helpful if you own property in multiple states, desire privacy, and want to avoid the probate process. A named Trustee distributes the estate to the named beneficiaries with little involvement from the courts. The Living Trust document itself names three different parties:
The Grantor is the individual or couple establishing the trust. The grantor controls what happens with the Trust Assets. Grantors are also referred to as Settlers, Trustors, and Donors. They determine the rules to be followed within the Trust. The Grantor is the only ones that can change the document’s terms, withdraw all of the assets prior to its termination, or revoke the trust in its entirety.
The Trustee is the person who manages the Trust in accordance with the written direction of the Grantor. It is not unusual for an individual to be both Grantor and Trustee. Alternate of Successor Trustees, who can be the adult children of the Grantor, are named to serve as Trustees in the event of the death or incompetency of the original Trustees. It is also possible to name a bank as Trustee or Successor Trustee. It is up to the Grantor to make this decision.
The Beneficiaries are the individuals who receive the income and the principle of the Trust. Typically, the Trustors, while alive, have sole access to all of the income and principal in the Trust. Upon the death of the Grantors, the income and principal are distributed to their children. It is important that only beneficiaries of suitable age and discretion receive sizeable distributions. Therefore, where minors are involved deferred payments in a series of installments is frequently the best approach.
2. An Irrevocable Living Trust is one that cannot be changed once it has been established. This type of trust is often used to reduce taxes or to provide for children for a specific purpose.
3. Special Needs Trust (sometimes called a supplemental needs trust) is used to provide for an individual with a physical or mental disability. The Special Needs Trust does not interfere with the disabled person's government benefits such as Medicaid.
4. Qualified Personal Residence Trust allows one's personal residence to be transferred into an irrevocable trust. The value of the property is assessed as of the date of transfer to the trust. The beneficiaries must be spouse or children, or brother or sister or spouse of these individuals. If the property is sold, it loses its tax benefits.
Cost for creating a Trust
Single person: $350
Married under the estate tax exemption: $450
Married over the estate tax exemption (AB Trust): $650
$25 each:
~ Living will
~ Power of Attorney
~Health Care Surrogate
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