Some families in Florida create trusts for their loved ones or themselves. They cover property, money and other objects, and state laws define and regulate how to handle them.
With several trust options out there, it can be hard to choose one suitable for you. That said, this guide covers five kinds of trusts to consider.
Annuity Trust
When setting up an annuity trust, you provide your beneficiary (which can be yourself or someone else) an income by moving money or other benefits to it. Annuity trusts come in many forms, including a deferred annuity trust — a lump sum used to buy an annuity paid out years later — and an immediate annuity trust, which is a lump sum that pays beneficiaries instantly.
Living/Revocable Trust
A living trust, aka revocable trust, is one you can create during your lifetime to leave assets to your heirs once you pass on. Many guarantors like this type of trust because it helps them avoid the expensive probate process, plus they can add or remove beneficiaries or change inheritance rules.
Irrevocable Trust
Unlike a revocable trust, you can’t change an irrevocable trust unless you get permission from your heirs. Though it has many restrictions, irrevocable trusts guard your estates against property taxes and creditors.
Joint Trust
A joint trust allows you and another person to be co-trustees. After one individual passes away, the other one can control it. Though most joint trusts consist of married couples, siblings or best friends can operate them, too.
Pet Trust
Trusts aren’t just for people. If you’re a pet owner and want to ensure your animal’s welfare upon your death, you can set up a pet trust so that its new owner cares for it properly.
Are you still uncertain about the appropriate type of trust for your situation? Seek out legal tips and guidelines to help you explore options.