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Florida trust law allows property and assets to be transferred without the estate having to go through the sometimes costly and time-consuming probate process.

Once an irrevocable trust is created, it cannot be altered or canceled—not even by the individual who created the trust. Once property is transferred to an irrevocable trust, it can only be distributed according to the terms laid out in the trust documents.

Irrevocable trusts can be used to shield assets from creditors, to benefit family members who are best served by having a regular flow of income instead of a large amount of money at one time, or to provide certain tax benefits.

Irrevocable trusts can be used to distribute the proceeds of life insurance policies.

Typically irrevocable trusts are only in force for a set amount of time. Afterwards whatever remains in the irrevocable trust is distributed according to specific directions laid out in the trust documents.

Once property is transferred into an irrevocable trust, it no longer belongs to the person who placed it in the trust. This person is sometimes referred to as the grantor.

Revocable trusts are created during the life of the grantor. They can be changed or even cancelled during the life of the grantor. When you place assets in a revocable living trust, you still retain control over the assets, and you are still the owner of those assets.

Sometimes revocable trusts are also called living trusts. However, it is also possible to have an irrevocable living trust.

These are one of the most common estate planning tools. They allow for property and assets to pass on without going through probate. When structured properly, revocable trusts can lower, or even avoid, estate taxes.

Revocable trusts will not shield assets from creditors. However, they can make it more difficult and costly for creditors to reach the assets.

Revocable living trusts are extremely effective at avoiding probate. This allows your heirs to avoid having to pay probate fees and costs. Skipping probate also allows you to keep the details of your estate private. In probate you have to enter the contents of the will into the public record. With a trust, nobody who is not part of the trust has access to the document.

A revocable living trust is more efficient vehicle for distributing property upon the death of the trust make than a will is. Upon the death of the trust maker, the assets can be immediately available for the heirs for paying any costs related to things like funeral expenses, taxes, or fees. Often a probate judge has to approve these expenditures if there is only a will.

They also allow the creator of the trust to leave very specific instructions for how their assets are to be distributed after their death. They can order that all the property be given out, as it would in a will, or it can setup conditions and timelines for when assets may be distributed to the heirs.

Revocable living trusts are usually easier to amend than wills. Unlike a will, you can also have multiple originals of a trust. This means that lost paperwork will not subvert your estate plan.

Revocable living trusts allow people to continue to enjoy access to all their assets while they are alive and to change their minds about certain conditions of the trust. This type of trust is fluid. Property is often moved in and out of the trust during the lifetime of the trust maker.

If a trust maker becomes unable to manage their own assets due to illness or injury, a revocable living trust can allow for a handpicked trustee can step in and manage the assets for the benefit of the trust maker and keep the assets from being wasted.

Revocable living trusts can be used to limit estate tax exposure for larger estates. However, the Florida trust lawyer must setup the trust correctly to successfully avoid estate taxes. These types of trusts do not have the same tax advantages as an irrevocable trust.

Trusts also allow you to give decision-making power over the distribution of the assets to a third-party that is not emotionally involved. This allows for continuity in the management of the assets. It also ensures your instructions for the management of your legacy are faithfully followed.

Special Needs Trusts: One of the biggest worries of parents with children suffering from severe disabilities is how to make sure these children are properly provided for in the event of the death of the parents. These same issues can also apply to people caring for their aging parents. This type of trust is created specifically for people who lack the mental or physical ability to manage their own finances. Often it is usually setup as an irrevocable trust so that the beneficiary can still qualify for need-based government assistance such as SSI or Medicaid.

Testamentary Trusts: A testamentary trust is an irrevocable trust setup as part of a will. These trusts do not avoid probate. There are often funded from the proceeds of life insurance policies. A testamentary trust can be setup to make sure that young children who are unable to manage their own finances are provided for. Unfortunately, they can also cause additional tax issues, and are often only appropriate in a very limited set of circumstances.

Discretionary Trusts: Instead of laying out specific amounts or percentages that should be distributed to the heirs of the estate, a discretionary trust allows the trustee discretion in how to distribute the proceeds. The trustee is not given unlimited discretion. Instead, the terms of the trust instruct the trustee when and to whom to make disbursements depending on circumstances. These types of trust are much more flexibility than a will when deciding how your legacy will be protected and managed. These trusts are irrevocable trusts. They are often used in tandem with a revocable living trust.

Spendthrift Trusts: Sometimes people may be old enough and free from disabilities that would impede their ability to manage their own finances, but they still lack the skills to successfully handle a sudden inheritance. A spendthrift trust is an irrevocable trust that puts assets beyond the reach of creditors. A trustee is responsible for managing funds on behalf of the heir and only distributing money in limited circumstances such as for essential living expenses. Adults with significant debts, substance abuse issues, or young adults without enough experience to successfully manage a large inheritance often benefit from a spendthrift trust. Spendthrift trusts sometimes are created for a limited time duration, such as until a child reaches age 25.

The first step is having an accurate financial picture. You and your estate planning attorney must know what all of your assets are and if any already have designated beneficiaries. Some assets can be passed on to the heirs without a will or trust. Life insurance is one of these. However, often it would be better for the heirs if these assets were placed into a trust instead of being passed on directly.

The second step in deciding what trusts, if any, are appropriate in a situation is to consider your goals. Usually, one of the major goals is to avoid as many taxes as possible. Trusts are almost always part of an effective estate tax management strategy. However, other goals may influence what specific type of trust is needed. Families with one special needs child and other healthy children will likely need several different estate planning documents to make sure everyone is fully taken care of.

One of the last considerations when choosing a trust as part of your estate planning strategy is your needs. You will not want to lock up too many of your assets in an irrevocable trusts while you are still living. But, in some circumstances it may make sense to put some assets in an irrevocable trust to fully shield them for a period of time.