Full question:
our will is outdated. we sold all properties that was in the will and bought an annuity. this will have to be paid out in three years. how can we put this money in a trust for our children. we have four and only want it in one daughter's name to handle the distribution at our death.
- Category: Trusts
- Date:
- State: Florida
Answer:
A trust can serve various purposes, such as reducing tax liabilities, easing financial management, protecting assets, and ensuring wealth preservation. By establishing a trust, you can avoid probate delays and expenses. A trust allows you to manage how assets are distributed to beneficiaries, which can protect them from spending their inheritance too quickly.
A living trust is created through a Declaration of Trust, which outlines the terms, including who will be the Trustee. After creating the trust, you need to transfer assets into it, a process known as 'funding the trust.' If you want to include real estate, a deed must be properly executed, naming the Trust as the Grantee, and recorded accordingly.
For your annuity, it’s advisable to change the owner and beneficiary designations to reflect the trust. The relationship between the trustor and annuitant will influence the best approach for these designations. Consult with your agent before making changes.
A trust can be revocable, allowing changes during your lifetime, or irrevocable, which cannot be altered once established. Revocable living trusts can be amended as long as the creator is competent. An irrevocable trust, on the other hand, is often used for tax benefits and asset protection.
If you want to specify that only one daughter manages the distribution, you can name her as the Trustee in the trust document. This gives her the authority to manage and distribute the trust's assets according to your wishes after your death.
It’s recommended to consult with a local attorney who specializes in estate planning to ensure that the trust is set up correctly and meets your specific needs.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.