Revocable and Irrevocable trust.

Living trust are essential estate document. Typically, they are used to pass properties and other assets to desire beneficiaries. Asides this, a living trust ensures that the transfer process come with less hassles and less or no court formalities. Trust is a legal document stating the asset or part of your estate you want a desired beneficiary to get. Also a living trust ensures that you can name someone who will manage your medical or financial responsibilities should you become disabled or incapable of doing so. Generally, the document involves the trust maker, the desired beneficiary and also the trustee.

Revocable trust.

The revocable living trust permit change and flexibility of the trust. You can remove particular assets or change the named beneficiary in the trust. Altogether, a revocable trust can be cancelled or dissolved. Thus, this means that the trust maker retain the power over the trust during his lifetime. The revocable and irrevocable living trust perform the same function but operate in a slightly different manner. There are majorly three people involved in a living trust, the trust maker, the trustee and the trust beneficiary. The trust maker is the grantor, or the one who makes the trust to transfer ownership of assets, the trustee manages the assets placed in the trust for the beneficiary.

Irrevocable trust.

The irrevocable living trust cannot be undone. Once the assets has been transferred into trust it cannot be changed. This type of trust is effective in reducing excessive estate taxes and also ensure protection from lawsuit and creditors. A revocable trust usually turns permanent or irrevocable upon the death of the trust maker.

Who should be the trustee in a living trust?

The difference between irrevocable and revocable trust is further experienced in the trustee named to manage the trust. For instance, when a couple decides to create a revocable trust, they could be stand for and name each other trustee, however, if an individual names himself as the trustee in the irrevocable trust, the purpose for which the trust is created would not be thoroughly implemented. For some reasons, state laws fails to dictates who should be named as trustee of an irrevocable trust, however certain rules and exceptions should be followed. 

• To name an individual as your trustee, you should have so much trust in them to handle estate and other properties.
• Also the named trustee should be able to handle the beneficiaries of the trust.
• The named trustee should know how to properly transfer the assets placed in the trust to the beneficiaries with troubles.
• The named trustee must be able to handle complex financial transactions and also know the state laws concerning estate and trust implementation.

While some people use trust attorney and corporate trustee, other result to naming members of their family as a trustee. This could be a wrong move, as lot of problems can arise to this effect. It is expected that when naming a trustee, a professional capable of handling the complicated situation of estate plan and its implementation be selected. Contact a Miami estate planning lawyer near you for help.

Special types of living trust.

Spendthrift trust

This trust is created for minor who are yet able to able money. The trust helps to keep the assets for the named beneficiary until they are able to handle them.

Special need trust.

A special need trust is prepared for desired beneficiaries with special need. Funds and assets are placed into this to ensure that the special needs of the individual can be met without also forfeiting their rightful government benefits.

Life insurance trust.

Life insurance trust is an irrevocable type of trust and also a very good way to avoid excessive estate taxes. The trust collects insurances on the grantor and use it for a named beneficiary in the trust.

An irrevocable life insurance trust (ILIT)

This type of special trust has an insurance policy for the trust maker, however its proceeds are not included in the gross value of the decedent’s estate for estate tax purposes.

Contact the best Miami estate planning lawyer closest to you today.

Our Miami-based law firm is office to highly skilled estate planning lawyers with decades of experience handling estate planning for Miami residents. We understand that every estate and every client is different, and this is why we look meticulously into the estate situation of our client to identify what measures would work best for them. Your peace of mind and financial security is our priority. Contact our offices to speak with a Miami estate planning attorney.