Trust Planning
Venice Trust Planning Attorney
As state previously, a trust is an arrangement whereby a trustee (single person or an organization) manages real, tangible, and intangible property for the benefit of another. The person setting up a trust is a settlor (or the owner of the estate), and the people they entrust their property to are the trustees. The trustees have a duty to the beneficiaries (or the people "benefiting" from the property or assets, the eventual owners) as representatives of the original estate. Trust planning is simply a legal way of transferring property and assets to selected beneficiaries upon one's death, and is incorporated in estate planning.
Types of trusts
The following are a few types of trusts:
Purposes for creating a trust
One of the most common purposes of creating a trust is privacy. The terms of a trust, upon the settlor's death, are private, whereas the Will itself is not. This aspect can be especially beneficial to families wishing to keep the terms of their estate private. In addition, another purpose for creating a trust may be for spending protection, which means that the settlor may be concerned of the spending responsibility of one or more of the beneficiaries. For example, if one of the beneficiaries has a history of poor spending and bad habits, the settlor may wish to create a trust where the beneficiary will be paid a set amount of money over time rather than the entire sum at once.
Two other common reasons for creating a trust are charitable donations and contingency age. In many law jurisdictions, charitable donations must be set up in the form of a trust. Contingency age comes into relevance when leaving assets or property for children. When leaving assets to children, a trust must be set forth until the child has reached contingency age (often 18 or 21, the predetermined age at which the child is old enough to receive their assets).
If you have any questions about trust planning, call to speak with Michael A. Chiantella today. Call 941-488-1779 or
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