Fort Walton Beach Revocable Trust Attorneys
Florida Trust Laws - Which Trust Is Best for You?
One of the most important aspects of the estate planning process is creating a trust to protect your interests and your beneficiaries. At Vanover Law Firm, our lawyers are experienced in explaining and executing various types of trusts for our clients. But which trust is best for you?
Contact our lawyers today at (850) 999-0006 to learn how Vanover Law Firm can assist you in implementing the trust you need.
A revocable trust allows your family to avoid probate and execute your estate plan according to your wishes through life and death. A trust document called a "trust agreement" is drawn up and all of your assets are entrusted to a "trustee" who is responsible for managing your estate. A trustee can be a family member, friend, a bank, or a third party company. The benefits of a revocable trust is that it is "revocable" which means that once it is submitted you may always modify the document and/or terminate the trust. This option is available to all who create a trust as long as they are not incapacitated.
Note: it is important to transfer all relevant assets into the trust as anything that is not added to the trust is susceptible to probate. Probate is an extremely expensive, time consuming, and is not always guaranteed to work. At times your loved ones may not receive what you meant for them to have.
However, the problem with just a revocable trust is that it provides no protection of your assets from creditors or Medicaid expenses. If you pass away, your trustee is responsible for paying all of your lasting expenses. There is now a much better choice than the revocable trust: that choice is the Florida Asset Protection Irrevocable Trust (FAPIT).
An irrevocable trust creates a virtual safe deposit box for your assets. Once the assets are in the trust they are immediately protected from your and your family’s future liabilities. After five years the assets in the trust are not countable for purposes of receiving long term care benefits in a nursing home. After five years you can keep the assets in the trust from being harmed if you apply for long term care benefits. This means you won’t have to spend down all of your assets in order to qualify for benefits.
According to a Genworth study about 72 percent of Americans will need long term care in their lifetime. The average cost of a nursing home in Northwest Florida in 2019 is $8200 per month. The new Florida Asset Protection Irrevocable Trust (FAPIT) has the flexibility to allow you to control your assets while protecting them from future creditors and long term medical care expenses. You can protect and nurture those assets in the FAPIT while you are alive. You can legally take all of the income off of those assets while you are alive.
You can also change the trustee or beneficiaries anytime during your life. You can invest the assets as you see fit while protecting them for your family. After five years all of the assets in this FAPIT are off limits to Medicaid. This means the assets will be protected from nursing home costs if you need long term care in the future. Remember that there is a 5 year look-back clock ticking in order to protect the assets from Medicaid in the future. The quicker you act, the quicker you can keep your assets from being lost to long term care costs.
Click here for more information regarding irrevocable trusts.
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Deciding which trust will best benefit you is a difficult decision, and retaining the services of a lawyer experienced in estate laws will benefit you when planning your trust. At Vanover Law Firm, our attorneys are knowledgeable in the various types of trusts available and can help you review your options during a consultation.
Contact the Vanover Law Firm today at (850) 999-0006 to learn which trust is best for you!