Estate planning is a broad topic, so we will just tell you about two powerful ways to control your assets after you are gone.
People think that if you make a will, you escape the delay and expense of probate. You don't. Wills are good for many things, but not for sidestepping the probate process. To do this, you must consider creating a trust. A trust is kind of like a corporation — it is a legal entity that exists apart from you, and it never dies. Think of it as a set of unignorable instructions for the disposal of your estate.
Many people have no estate planning program of any sort, or they are relying on a will they drafted 30 years ago. This is a big mistake, and it will likely cost your heirs in time, stress and taxation.
The probate process can be long and tedious. Not to mention, it can cost you thousands of dollars to put an estate plan through probate. Many in Florida have been looking for a way around the probate process. Attorney Kelly Keene explains how a revocable living trust can help you avoid probate.
This kind of trust, which is ideal for most people, has three powerful objectives. It sidesteps probate and it can avoid guardianships — a very expensive process. It assists in reducing federal estate taxes through a credit shelter trust, keeping federal and state taxation to a minimum.
This trust vehicle is becoming very popular. Its most common use is when you want to leave assets to minor grandchildren, but you do not want the funds going through an untrustworthy parent. The irrevocable spendthrift trust puts assets in the care of a trustee who protects them until the children are of age.
Don't create your own trust based on a book you picked up at a bookstore or something you read on an Internet site. A poorly made trust is worse than no trust. To create an ironclad trust that will ensure your directions are followed, work with an experienced estate planning attorney. Trusts give you power to manage your assets even when you're no longer with us.
