A revocable living trust is a document that allows you to transfer assets from your individual person to yourself as trustee, thereby removing assets from your individual estate and avoiding probate and limiting the estate tax burden on your family after you leave. have gone This transfer is allowed in Florida, but not in all states. The Trustee retains title to the Trust’s assets and controls them as if they were his own property. Therefore, he can manage your assets in the same way as before the trust was created and funded. Upon your death or incapacity, the Successor Trustee you have selected will take over and administer your Trust in accordance with its terms.
A revocable living trust is modifiable and/or cancelable at any time during your life. You can buy or sell securities in a revocable trust as you do now, and you can make gifts from that trust if you wish. The Trust can also help you if you become disabled. You may designate a Successor Trustee to be in charge of administering your Trust and taking care of your needs in the event you become disabled or incapacitated. The Successor Trustee could pay all of the Trust’s medical and household bills so you don’t have to worry about them when you recover.
There are many advantages to having a revocable living trust. Ensures protection in cases of emergency, disability or incompetence. Avoid succession and reduce expenses and delays in the liquidation of wealth tax. It provides continuity in the investment management of your assets. Eliminate guardianship issues. You remain private and therefore minimize the publicity of your estate. You can coordinate all your assets in one efficient, unified and flexible plan. It can be revoked or modified at any time. You can limit or eliminate the estate tax burden on surviving beneficiaries.
In general, anyone with assets of more than $100,000 should consider implementing a revocable living trust as the cornerstone of their estate plan. That $100,000 number includes the benefit of any life insurance policies you own at the time of your death, your home, your bank accounts, your car, jewelry, etc. You’d be surprised at the dollar value the federal government assigns to your property to determine how much inheritance tax will be levied on your estate. That $100,000 is a very low goal. He should speak to his South Florida estate planning attorney immediately about creating a revocable living trust.