One of the main concerns many have regarding estate planning is the financial responsibility of their heirs. Often, it’s assumed that as long as you have an established will, you no longer need to consider estate planning. While a will is a great foundational document, there are many tools you can utilize to help you ensure your wishes are honored after your passing. One such option for those looking to prevent poor spending from beneficiaries is a spendthrift trust. As such, if you’re unsure what this is or how it can help protect your assets and beneficiaries, you’ll want to keep reading. You’ll also discover the importance of working with Tampa trust lawyers to assist you through this process.
How Does a Spendthrift Trust Work in Florida?
When you create a will in Florida, you can leave assets to your loved ones. They will receive these assets after the probate process has concluded and your estate is settled. However, if you have younger or financially irresponsible beneficiaries, you may worry about leaving large amounts of money to them to receive in a lump sum. As such, creating a spendthrift trust may be ideal for your circumstances.
A spendthrift trust is a type of trust fund that allows you to release funds to beneficiaries incrementally. This is ideal for beneficiaries who may not have the best spending habits or those facing lawsuits from creditors. By establishing this kind of fund, you can determine how often to provide your beneficiaries with assets to help encourage smart financial decisions. Additionally, because the funds are held in a trust fund, they are protected from creditors in the event your beneficiary is sued. This means the creditor will be unable to seize the assets intended for your beneficiary that are held in the fund.
If I Want to Establish One, Where Do I Start?
If you have concerns regarding your beneficiary’s financial responsibility and establishing a spendthrift trust reflects your estate planning needs, understanding how to create one is critical. Generally, the first thing you must consider is the terms and conditions you would like to establish in the trust. This includes determining how much money you would like to place in the trust, how much of the funds the beneficiary will receive at a time, and the increments in which you would like them to receive the funds.
You must also determine who you would like to appoint as the trustee of the fund. This individual is responsible for managing and distributing assets to beneficiaries in accordance with the established terms and conditions. As such, it’s critical to ensure you choose someone trustworthy and reliable, as this is an important role.
Finally, you’ll want to ensure you discuss these matters with an experienced estate planning attorney with Tampa Law Group. There are important provisions for establishing a spendthrift trust in Florida, and your attorney can help ensure your trust adheres to the law to ensure it’s legally valid. Your attorney can also assist you in determining the best options for the trust, so you can have peace of mind that your wishes will be honored upon your passing. When you need help, contact our team today to discuss your legal options with a member of our firm.
