What should be considered before setting up a trust in St. Petersburg Florida?

Mar 27, 2020 8:00 PM ET

A trust is an important part of estate planning, specifically when an individual has assets that they want to make certain are utilized in a particular fashion, during their lifetime and/or upon their death. Trusts act as a financial tool to make certain a person’s assets are held, managed and distributed properly in accordance with their intended mission.

Setting up a trust.

The questions that should be addressed when setting up a trust include:

What type of assets will need to be included in the trust? Items such as stocks & bonds, real estate, mutual funds or personal property are usually included in a trust. Legal documents are prepared and filed with the appropriate agencies and courthouses to transfer and record deeds, or re-register stocks under the name of the trustee. A brokerage account will need to be set up so that assets can be bought and sold per the terms of the trust agreement.
Who will be named as a grantor? This is the person who will be moving assets into the trust.
Who will be the named beneficiaries of the trust? They will be the people, or entities directly benefitting from the trust.
What person or financial entity will oversee the trust? They will manage the assets.
How will the assets be managed? Will they be invested and if so, how? What will be the schedule of distributions?
What is the life span of the trust? Under what conditions will it be terminated?
Will the trust be revocable (have the ability to be changed) or irrevocable (not able to be changed)?

Revocable trusts have assets held in the name of the trust and can be managed by a successor trustee if the grantor becomes mentally incapacitated. Assets are still subject to the same legal provisions as personal property, meaning they can be taxed or attached by others, such as creditors, when necessary.
Irrevocable trusts are commonly used to remove the value of property from a person’s estate so that property cannot be taxed when the person dies. The individual who transfers assets into an irrevocable trust permanently gives those assets to the trustee and to the beneficiaries of the trust. 
A trust fund usually requires a taxpayer identification number (TIN) from the Internal Revenue Service so that tax returns and financial accounts at banks and brokerage firms can have a unique identifier directly correlating to the day-to-day financial business of the trust.

Administering a trust.

 

Seek legal counsel to make sure a trust will be set up and administered according to the specific requests of the person initiating a trust, in concert with the laws of the state in which it is filed.  Accounting records must be kept in support of all business activities related to the trust.  Management firms often take over specific functions of a trust and outsource to lawyers, professional accounting and investment firms in the best interests of the operation of the trust.

Contact an experienced attorney at Baby Boomers’ Barrister Law Firm in St. Petersburg Florida to answer your questions regarding trust documents.

A trust is an important part of estate planning, specifically when an individual has assets that they want to make certain are utilized in a particular fashion, during their lifetime and/or upon their death. Trusts act as a financial tool to make certain a person’s assets are held, managed and distributed properly in accordance with their intended mission.

Setting up a trust.

The questions that should be addressed when setting up a trust include:

What type of assets will need to be included in the trust? Items such as stocks & bonds, real estate, mutual funds or personal property are usually included in a trust. Legal documents are prepared and filed with the appropriate agencies and courthouses to transfer and record deeds, or re-register stocks under the name of the trustee. A brokerage account will need to be set up so that assets can be bought and sold per the terms of the trust agreement.
Who will be named as a grantor? This is the person who will be moving assets into the trust.
Who will be the named beneficiaries of the trust? They will be the people, or entities directly benefitting from the trust.
What person or financial entity will oversee the trust? They will manage the assets.
How will the assets be managed? Will they be invested and if so, how? What will be the schedule of distributions?
What is the life span of the trust? Under what conditions will it be terminated?
Will the trust be revocable (have the ability to be changed) or irrevocable (not able to be changed)?

Revocable trusts have assets held in the name of the trust and can be managed by a successor trustee if the grantor becomes mentally incapacitated. Assets are still subject to the same legal provisions as personal property, meaning they can be taxed or attached by others, such as creditors, when necessary.
Irrevocable trusts are commonly used to remove the value of property from a person’s estate so that property cannot be taxed when the person dies. The individual who transfers assets into an irrevocable trust permanently gives those assets to the trustee and to the beneficiaries of the trust. 
A trust fund usually requires a taxpayer identification number (TIN) from the Internal Revenue Service so that tax returns and financial accounts at banks and brokerage firms can have a unique identifier directly correlating to the day-to-day financial business of the trust.

Administering a trust.

 

Seek legal counsel to make sure a trust will be set up and administered according to the specific requests of the person initiating a trust, in concert with the laws of the state in which it is filed.  Accounting records must be kept in support of all business activities related to the trust.  Management firms often take over specific functions of a trust and outsource to lawyers, professional accounting and investment firms in the best interests of the operation of the trust.

Contact an experienced attorney at Baby Boomers’ Barrister Law Firm in St. Petersburg Florida to answer your questions regarding trust documents.

 

Baby Boomers’ Barrister Estate Planning & Elder Law

100 2nd Avenue S.
Suite 206N
St. Petersburg, FL 33701

Phone: (727) 565-4250

 

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Contact Information:
Baby Boomers’ Barrister Estate Planning & Elder Law
100 2nd Avenue S.
Suite 206N
St. Petersburg, FL 33701
Phone: (727) 565-4250


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