USING A LIVING TRUST FOR YOUR ESTATE PLANNING

There are various options that are available to those wishing to use a trust for estate planning purposes. How exactly are trusts used for estate planning? And does a trust eliminate the need for a will?

A trust does not eliminate the need for a will. A will must be used if a testator wants to nominate a guardian for their minor children. Also, a will can be used to direct that the testator's assets not already in a trust to be placed in a trust after death. Without a will, a deceased person's assets would be distributed under the rules of intestate succession.

A living trust is a common form of trust used by those planning their estates. The person whose assets are placed in a trust is called a trust settlor. A settlor can place title to their assets and possessions into the name of a living trust. The settlor still has the use of the property, but any property in the trust at the time of the settlor's death will probably avoid the probate process. This can speed up the trust distribution process and can afford more privacy. Trusts cannot be used to completely avoid estate taxes, but they can often be used to lower the amount of tax that must be paid.

Trusts are very useful tools for those planning their estates, but trusts are also very complex entities. Estate planning attorneys can be helpful resources for those considering a trust for estate planning purposes and for those needing help with trust administration.

Please reach out to us at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.

Established in 1991, Rignanese & Associates is available to work with clients on their legal needs.

On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.

Source: Cincinnati.com, "Now is the time to consider the basics of estate planning," Tom Cooney and Crystal Faulkner, Nov. 2, 2017