A trust can prevent one from spending assets irresponsibly

When leaving assets to your children or grandchildren in Florida, you may worry about their ability to utilize those assets responsibly. You’ve spent your life building your wealth, so it’s understandable that you want your heirs to get the maximum benefit from your hard work. Fortunately, there are ways to craft an estate plan so that the court distributes your assets when and where you wish. Using a trust is one method of protecting your assets after your death.  

Benefits of using a trust  

When you include a trust in your estate plan, it not only benefits yourself but also your beneficiaries. A trust can protect your assets from being extraneously taxed and can help your family avoid the lengthy probate process. Plus, by using a trust, you have more control over the use of the assets. You can add a clause that prevents your children or grandchildren from spending their inheritance irresponsibly.  

A trust can also prevent your beneficiary’s creditors from seizing your assets. You can set up a trust for your heirs that will distribute funds in the time frame you believe to best benefit their needs. If you know that your heirs are not money-savvy, setting up a restrictive trust can help them be more financially responsible.  

Setting up your trust 

When completing your estate plan, you can set up your trust in a way that meets your needs. You may wish to specify when your beneficiaries will receive their inheritance. You can set up your trust to provide a monthly payment or a lump sum once your heirs reach a certain age. Some people stipulate that an heir must finish college or reach some other life goal before receiving an inheritance.  

A trust can also dictate who will receive the remaining assets if a beneficiary dies. This can be especially helpful in situations where second marriages or stepchildren exist. Putting your funds in a trust prevents your beneficiaries from losing their inheritance in a divorce, which is an extra step that can help their financial security in the future.  

Estate planning assistance 

Estate planning involves more than just creating a will. By adding other elements to your Florida estate plan, like trusts, you can further protect your assets and provide financial security for your beneficiaries. If you have questions about estate planning, or you need assistance in getting started with planning for your financial future, you can benefit from consulting an attorney who is familiar with estate planning laws.