Why Create A Revocable Trust?
Revocable trusts are legal documents that are created by a person known as the grantor. These documents name beneficiaries who will receive the property within the trust, as well as a trustee, who will manage the property within the trust and distribute it upon the grantor’s death. Many people draft trusts simply to help their loved ones avoid probate after they pass away. While this is a significant benefit of trusts, there are many others, as well. Below, our Volusia County trusts lawyer explains what these are.
Disability
A revocable trust is one of the best ways to ensure you retain control of your property even if you became mentally or physically disabled. It can also protect your beneficiaries from losing Supplemental Security Income (SSI) benefits if they are disabled or suffer a disability in the future. Under federal law, individuals receiving SSI benefits can lose them if they receive an inheritance. Even if beneficiaries refuse the inheritance, they may still face significant penalties, depending on the size of their share. A special needs trust is one type of revocable trust that can help your beneficiaries avoid these issues.
Protecting Children from Previous Relationships
In today’s modern world, people are living longer and it is not uncommon for people to be married more than once. People also sometimes have children with a partner they are not married to and then separate before marrying someone else. Blended families are certainly a blessing for the entire family unit, but they can also result in complicated legal issues. A trust can protect children from previous relationships and make sure they are included and receive their fair share of property after their parent’s death.
Business Succession
If your business partner passes away, retires, or becomes disabled, a revocable trust can address concerns about succession of ownership and leadership. When an owner or key partner in a business is not able to participate in operating the business, it can significantly harm the company and even leave it in financial distress. A trust can name a trustee and make them responsible for ensuring business operations continue. Additionally, a buy-sell agreement can help with the sale of the deceased owner’s interest and ensure the company will continue to operate without interruption.
Easier Administration
Revocable trusts are easier to administer than wills. Wills must be submitted to the probate court for approval and a probate judge must prove, or validate, it. Trusts are not subject to probate and so, they can ensure beneficiaries receive their property soon after the grantor’s death, instead of waiting many months for the estate to be closed.
Our Trusts Lawyer in Volusia County Can Help with Your Case
Revocable trusts have many benefits, but only if they are executed properly. At Bundza & Rodriguez, our Volusia County trusts lawyer can ensure your document is drafted properly so you and your family are protected. Call us now at 386-252-5170 or chat with us online to request a consultation with our experienced attorney and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
