How does a trust work in Florida?
How does a trust work in Florida?
When you create a living trust in Florida you are the grantor of the trust, the one who decides its terms and places assets in it. You select a trustee who manages the assets. One of the benefits of a living trust is that assets placed in the trust do not go through probate.
Can there be two grantors of a trust?
It is possible for a trust to have multiple grantors. If more than one person funded the trust, then they will each be treated as grantors in proportion to the value of the cash or property that they each provided to fund the trust.
What would make a trust invalid?
In most cases, what makes a trust invalid is a problem with its creation. For instance, a trust might be legally considered invalid if it: Was created through intimidation or force. Was created by a person of unsound mind.
How does marital trust work?
A marital trust is a fiduciary relationship between a trustor and trustee for the benefit of a surviving spouse and the married couple’s heirs. Also called an “A” trust, a marital trust goes into effect when the first spouse dies. When the second spouse dies, the trust passes to its designated heirs.
Can surviving spouse be trustee of bypass trust?
The surviving spouse may act as trustee of a bypass trust or name someone else trustee. It’s the trustee’s responsibility to ensure that assets from the couple’s estate are divided appropriately into each part of the trust.
Can surviving spouse be sole trustee of QTIP trust?
QTIP trust assets are subject to estate tax at the death of the surviving spouse. Depending on the principal invasion standard and nature of assets in the trust, the surviving spouse may be able to act as her own trustee over the QTIP.
Can surviving spouse be trustee of marital trust?
A marital trust starts as a revocable living trust. A surviving spouse can be its trustee.
Does a marital trust get a step up in basis?
The assets in the marital trust, the A trust, do receive a step-up at the death of the surviving spouse since these assets are included in the spouse’s taxable estate.
How does a trust qualify for the marital deduction?
The trust qualifies for the marital deduction. In a QTIP trust, the surviving spouse must receive all income generated by the trust property for life, paid at least annually. After the surviving spouse’s death, the property passes to the remainder beneficiaries of the trust, who usually are the children of the couple.
Can my wife be the trustee of my irrevocable trust?
Anyone can be the trustee of an irrevocable trust, including your spouse.
Is a trust protector a good idea?
There are a number of reasons for appointing a trust protector. Having a protector allows a long-term trust to be more flexible and adapt to factual and legal changes. For example, beneficiaries may get divorced or die prematurely or the law may change.
Can a trustee be a trust protector?
A trust protector can be an individual or a group of individuals that is not the settlor, beneficiary, or trustee. Their role occurs in a directed trust. The trust protector’s role, in essence, is to supervise the trustee. If there is a trust protector, then they are appointed by the settlor typically with the trustee.
What is the difference between a trustee and a trust protector?
A protector is a person who is given administrative or dispositive powers under the terms of a trust instrument, not exclusively for his own benefit. The main difference between a protector and a trustee is that a trustee holds the assets of a trust while a protector does not.
