Can I Move Property In and Out of My Trust?
Many Floridians use tools known as trusts as part of their estate plan. There are many types of trusts, but what all of them have in common is that they allow the grantor, also called the settlor, to put their assets to use for the purposes or beneficiaries of their choice. One of the main differences between the various types of trusts is the amount of control they give to their creator after they have been established. Depending on the type of trust you have, you may or may not be able to transfer assets in and out of your trust.
Trusts that do allow you some freedom to maintain control and use of your assets include:
- Revocable trusts. With a revocable or living trust, you can serve as your own trustee while you are alive, allowing you to move and manage your assets freely. However, assets in the trust are generally considered to be your property and are not protected from creditors.
- Testamentary trust. This provision, placed into a will, creates a trust at the time of your death. Because it only concerns property you own at the time of your death, you are free to use your assets in any way while you are living.
Trusts that do not give the grantor the power to remove assets are called irrevocable. Types of irrevocable trusts used in Florida estate planning include:
- Generation-skipping trusts. Also called dynasty trusts, these tools are irrevocable trusts that allow you to leave assets to your heirs while avoiding federal estate taxes. With enough assets, these trusts can theoretically provide your family with income for centuries.
- Special needs trusts. These trusts, typically created for the purpose of helping a relative who cannot care for themselves because of illness or disability, are usually designed to be irrevocable.
These are just some of the many types of trusts that can be used as part of your estate plan. Each has different purposes and rules. To learn more about the tools you can use to care for your family, consult a trusted Florida estate planning attorney at the Charles Law Offices.