Month: August 2018

The Five W’s of Trusts (What, Who, Why, Where, and When)

Since my last article, people have been calling my office and inquiring on what a trust is and its potential benefits. As a result, I have decided to focus this month’s article on answering, what I like to call, the 5 W’s of a trust.

1) What: a trust is a legal document that transfers property during or after a person’s lifetime for the benefit of someone. The 2 most common types of trusts are: A Revocable and an Irrevocable Trust. A revocable trust can be changed or altered at any time by the creator or creators of the trust during his or her lifetime. In most circumstances, an irrevocable trust cannot be altered or changed.

2) Who: a trust can be made out for the benefit of any person that you may want, including young children, your spouse, a friend, or your parents.

3) Why: a trust can automatically transfer property without the use of a will or the need to go to court. Additionally, the use of a trust is usually faster than that of a normal will in transferring property and title as well as it helps avoid the lengthy process of probate in courts. A trust also has the following benefits: it secures your property for the benefit of your beneficiaries, it protects the property from claims from creditors while in the trust, and it also ensures your privacy (as a trust does not become a public record like a will does). Some trusts may even better your tax status with certain trusts if you fall above the taxable exemption.

4) Where: a trust can dispose of property anywhere, so long as the local law of where the property is located is followed and the property is properly titled in the name of the trust.

5) When: a trust can be created today with the help of our attorneys.

A trust is a very important document for the preservation of your property in the event of death or incapacitation. There are many factors to consider in creating a trust document and only a licensed attorney can walk you through the fine details of both the creation and the proper funding of a trust. The Coral Springs Probate Attorneys at Reinfeld & Cabrera, P.A. have experience in creating trusts and can formulate a trust to meet all your needs. Call us now to schedule a free initial consultation and to discuss our special rates. We are your Coral Springs lawyers. We offer legal services in Coral Springs, Tamarac, Margate, Fort Lauderdale, Coconut Creek, Pompano Beach, Deerfield Beach and Surrounding areas.

Important Estate Planning Definitions by Coral Springs Estate Planning Attorney

What is a Will?

A will is a written document, signed and witnessed, which sets out instructions for the disposition of your estate only at the time of or after the event of your death.

What is a Trust?

A trust is a set of instructions which come into effect as soon as the trust is created which means that it provides property management during your life and/or after your death. My best comparison is a trust is almost like a company, one you manage while your alive, and if your become incapacitated or die, it can be managed by your successors according to your instructions.

What is Probate?

The probate process takes place after someone passes away. Its primary purpose is to ensure your loved one’s assets transfer to the proper beneficiaries.

Differences between a Will and a Trust

Apart from the main difference that a will comes into effect only after death whereas a trust is in effect during lifetime and after death, there are many more things to think about when deciding between the two estate planning tools. Here is a list of some of the more significant differences which a trust attorney can explain in further detail:

•A will and the property in the will is subject to the probate process; a trust and assets in the trust are not subject to the probate process. However, assets in both plans may be subject to federal estate tax.

•Because a trust does not go through the probate process it may remain a private affair; a will goes through probate and therefore it becomes accessible to the public.

•A will allows you to assign a guardian for your minor children; a trust allows you to control when and how your minor children, grandchildren and other dependents access your trust assets.

•Often, the costs to set up and manage a trust can be much higher than setting up a will.

•The assets in a will do not need to be managed; a trust can only plan for assets which have actively been transferred into the trust, therefore the assets in a trust need to be actively managed.

•The actions of a trustee are not usually overseen by a court; the actions of an executor of a will are court supervised through the probate process.

•Because a will is only effective after death, it does not allow for instances where the person becomes incapacitated through injury or illness or old age; a trust provides a plan for the possibility of incapacity.

So, which is better for your family?

Obviously both have their pros and their cons and if this breakdown of wills and trusts cannot help you decide which plan you should use, a qualified and knowledgeable Trust attorney in Coral Springs will be able to point you in the right direction and help you put together a comprehensive estate plan.

Call our Coral Springs Probate attorney today! 954-334-1520.