• 13
  • February
    2012

A living trust provides a method for ensuring that assets are available to a loved one. A living trust can also hold assets for the person who placed them in the trust. Unique situations may call for a unique type of trust, such as a special needs trust.

A trust is a legal arrangement in which the trustee has title to the assets in the trust. The assets are held for another person, however - the beneficiary.

A trust is different from a will in many important ways. A will comes into effect when the person who signed it passes away. A trust, on the other hand, may be effective the day it is created. Additionally, a will that goes through probate is accessible by the public. The information surrounding a trust, however, is typically more private.

The creation of a trust can ensure that a family member or loved one is financially cared for. The creator of the trust can be as creative as he or she desires, within the law. How the trustee administers the trust, the property that the trust contains and what type of access the beneficiary has can all take different forms. It is important to remember that, in order to endure, trusts must follow Florida law. The government has strict guidelines for how trusts are created and maintained.

Whether the creator of the trust is wealthy, has a complex financial situation or simply wants to provide for a family member in need, a trust can be a very useful tool.

Source: USA Weekend, "Is a living trust right for you?," Jeff Wuorio, Feb. 8, 2012