If you have loved ones and people who depend on you, it is important to ensure that they are protected when you die. A will, trust, or both, can be very helpful, but there may be disadvantages to these estate planning strategies in some cases.
If your beneficiaries include a minor child, a person with special needs, or someone who does not handle money responsibly or may be vulnerable to exploitation, a testamentary trust will in Kendall might meet your needs. Speak with our experienced wills attorneys about whether it is the right tool in your situation.
Understanding Testamentary Trusts
A testamentary trust is a trust created by a will. The person who makes the will (testator) instructs that some or all of their property should be put into a trust upon their death. The testator retains full control of the property that will be used to fund the trust until they die, and they can revoke the trust at will.
The personal representative named in the will creates the trust and funds it with the property the testator designated. Sometimes a testator buys a life insurance policy and names the trust as the beneficiary. When the testator dies, the proceeds of the policy go into the trust and will be distributed to beneficiaries according to the trust’s terms.
The trust is administered by a trustee, who could be the personal representative or it could be a different person. An attorney in Kendall can assist a personal representative in establishing and funding the testamentary trust.
Advantages of Testamentary Trusts
A testamentary trust requires little effort by the testator. They must designate the property that will be transferred to the trust after their death, and name a trustee and successor trustee. A testator must leave instructions about how the assets should be distributed after their death. In many cases, testators choose periodic payments to beneficiaries or might postpone payments until the beneficiary reaches a specific age.
Setting up the trust is relatively simple. A Kendall attorney includes a clause in the testator’s will that directs the personal representative to create the testamentary trust upon the testator’s death. These trusts tend to be less expensive to create than other forms of trust.
Extra Protection for Beneficiaries
Unlike other types of trust, a testamentary trust is established after death and under the supervision of a probate judge. Although this can be seen as an administrative burden, court supervision offers an additional layer of protection if the trust is intended to benefit a vulnerable person.
A minor, someone with developmental or cognitive difficulties, or a similarly vulnerable person may not have the capacity to evaluate a trustee’s performance. The probate court can ensure that the trust is being administered as the testator intended.
Testamentary Trusts Have Some Disadvantages
Testamentary trusts go through probate. Although that is a benefit when a testator wants the additional assurance of court supervision, it is a negative in many people‘s minds. Probate is slow, labor-intensive, expensive, as well as public. When a testator creates a testamentary trust, the details of the trust are a matter of public record, so it may not be the best vehicle for people concerned about financial privacy.
Someone considering a testamentary trust should discuss their goals with an experienced Kendall attorney. This type of trust is useful in some circumstances, but another strategy might be more beneficial in a specific case.
Consult a Kendall Attorney About Testamentary Trusts Today
Testamentary trusts serve a valuable purpose. They ensure that children and vulnerable beneficiaries receive property according to the wishes of the testator, but under the supervision of a probate court.
The attorneys at The Florida Probate & Family Law Firm are skilled at finding solutions to a range of estate planning issues. Contact us today for a free case evaluation to explore whether a testamentary trust will in Kendall is the right solution for your family.
