What Is A Revocable Trust In Florida?
It can be strange to think about planning for an emergency or for a time when you will no longer be with your loved ones. However it is in your loved one's best interests if a will or revocable trust is organized and in place before a person's death. One may ask, what is a revocable trust? And how is it regulated under trust administration in the state of Florida?
Planning for a future that you may not be a part of seems somewhat bizarre. However, it is a smart decision. This is because estate planning tools like revocable trusts can be set up that ensure the best financial outcome for your loved ones. Revocable trusts, also known as "living" trusts, are enacted while a person is alive to determine the delegation of assets to loved one's in case of a person's passing.
Revocable trusts have certain advantages that an ordinary will does not. However, this is all subjective to the person, family and financial aspects involved. An important thing to know about revocable trusts is that all pertinent financial assets and accounts must be properly transferred and delegated within the trust in order for them to be valid trust assets after death. The trust is "revocable" meaning the terms or details of the trust may be altered at anytime during a person's life.
Revocable trusts are advantageous for family members because it is a way to transfer assets and financial accounts without incurring additional taxes or other fees correlated with gifting money to a family member or friend after death. Obviously, if a person has passed on, they are unable to complete this task themselves. This is one of the primary purposes of the trust, ensuring the safety and financial security of loved ones.
Source: floridabar.org, "What is a revocable trust?," Accessed Jan. 5, 2015, 1. On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC posted in Trust Administration on Friday, January 9, 2015.