A Revocable Living Trust is a document that allows you to transfer assets from yourself to yourself as a Trustee, thereby removing assets from your personal property and avoiding probate and limiting the inheritance tax burden for your family after you leave. These transfers are permitted in Florida, but not in all states. Trustees retain rights to the Trust assets and control them as if they owned them. Therefore, you can manage your assets in the same way as before the Trust was created and funded. Upon your death or incapacity, your chosen Successor Trustee takes over and administers your Trust according to its terms.
A Revocable Life Trust can be changed and/or canceled at any time during your lifetime. You can buy or sell securities in a Revocable Trust as you do now and you can give gifts from that Trust if you wish. Trust can also help you if you become disabled. You may appoint a Successor Trustee who is directed to administer your Trust and take care of your needs should you become disabled or incapacitated. The Successor Trustee can pay all of your household and medical bills from the Trust so you don’t have to worry about them when you recover.
There are many advantages to having a Revocable Living Trust. It guarantees coverage for emergencies, disability or disability. This avoids probate and reduces property tax settlement costs and delays. This provides continuity in the management of your asset investments. This eliminates the issue of guardianship. It stays private and thus minimizes the publicity of your estate. It can coordinate all your assets in an efficient, unified and flexible plan. It can be revoked or changed at any time. This can limit or eliminate the real tax burden on living beneficiaries.
Generally, anyone with more than $100,000 in assets should consider implementing a Revocable Living Trust as the foundation of their inheritance plan. That $100,000 figure includes the benefits of the life insurance policy you had when you died, your house, your bank account, your car, jewelry, etc. You’d be surprised at the dollar value the Federal government puts on your property. to determine how much estate tax will be imposed on your estate. That $100,000 is a very low target. You should speak to your South Florida estate planning attorney immediately about setting up a Revocable Living Trust.