• 29
  • September
    2011

Trusts are generating a lot of interest these days because of the many benefits they can offer families. Since a trust is an entity that can own property, people see it as a safe place to put their titles and deeds. Some people are looking at them as a possible way to avoid probate while others are hoping to avoid taxes. The bad news is that a trust is not the tax shelter that some hope it is. Many don't realize, though, just how many more benefits they can get from setting up a trust. A trust can help:

Avoid probate. This is one of the main reasons, people set up a trust. A trust, like a will, determines who will inherit a person's possessions, but anything that goes into a trust avoids probate.

Protect privacy. The assets in a trust are not part of any public court record.

Manage an estate for an incapacitated person. Special needs trusts are often set up to protect the property of a minor or of an adult with dementia. A trustee, often a family member, takes care of the estate according to the instructions in the trust.

Florida living trust attorneys point out that trusts should be devised by professionals in order to be effective. There are do-it-yourself trust forms published online that may appear to be a way to save money at first. However, these forms cannot provide the guidance that a family may need to determine the type of trust they should have and the funding they should place in it.

Source: Miami Herald "Trusts can offer families benefits, discretion" Sept. 10, 2011