Trust Attorney

If you want to get serious about planning your future, a Lithia, FL trust attorney can help. But do you know whether a will or trust is better for you? Read on to find out more about the difference between wills and trusts, and get in touch with Morton Law Firm LLC to get started.

Understanding Wills

Wills and trusts serve the same purpose, but the execution is a little different. At their core, they’re both designed to provide instructions and a list of your assets, so after your death your family and friends know what to do with your estate after your death.

However, a will is a little more straightforward to create. A will is a list of everything you own (your assets) and a list of who gets what (your beneficiaries). You’ll also name an executor – a trusted individual that you know can manage the whole process from start to finish. Wills are easy: You create your will, and you don’t have to think about it afterwards.

Unfortunately, when it comes to execution, a will is a little more complicated. Wills mean probate, and probate is a challenge in and of itself.

The Problem With Probate

Probate is the process through which the contents of your will are distributed and divided. It takes a long time, and there’s a chance for a dispute at each step along the way.

Your beneficiaries will have to be notified, and the will itself will need to be sent to a special court to make sure it’s completely legitimate. Then, your assets will need to be tracked down and valued, your final debts and taxes will have to be paid off, and all the necessary fees will have to be paid.

As you can imagine, probate is a pain. It can be hard enough to deal with the loss of a loved one without a mountain of paperwork and fees, so it’s important to consider any options that can minimize the headache. Fortunately, you can look into living trusts.

Understanding Living Trusts

Like a will, a living trust (oftentimes referred to as just a trust, but we’ll go into that later) provides instructions and a list of your assets. After your death, the instructions in your trust will be carried out and your beneficiaries will receive what you’ve left behind.

However, a trust cuts probate out of the equation completely. This is because a trust is actually set up by naming a third party to handle your estate. Unlike a will, there’s no probate, and the terms are set in stone. If you set up your trust with the help of a qualified Lithia trust attorney, there’s minimal chance of dispute.

Trusts do have a downside: They need to be actively managed throughout your lifetime. This is where the “living” in “living trust” comes from. While you may have to be a little more active when you create a trust, it’s often seen as a worthwhile effort to spare your friends and family any drama that can come with a simple will.

Get In Touch With Morton Law Firm LLC Today

It’s important to plan your future, whether you decide on a will or a trust. Fortunately, the team at Morton Law Firm LLC is standing by to help. If you’re ready to get started, get in touch with a Lithia trust attorney from our office today.

How Assets Are Distributed With A Living Trust

As our Lithia, FL trust lawyer can tell you, a living trust is a powerful tool for managing your estate and making sure your assets are distributed according to your wishes. By placing your property into a living trust, you create a clear plan that guides how your possessions, finances, and other assets are handled both during your lifetime and after your passing. At Morton Law Firm, we help individuals and families create living trusts tailored to their unique needs. Attorney Morton has been providing families throughout Florida with guidance in estate planning since 2000, so trust him with your estate plan.

Who Is Responsible For Distributing The Assets In A Living Trust?

When the grantor (the person who created the trust) passes away, the successor trustee takes over the responsibility of distributing the trust’s assets. This person is usually named in the trust document and has the authority to manage, distribute, and settle the trust’s affairs. The successor trustee follows the instructions outlined in the trust document to ensure each beneficiary receives their share. This process typically avoids the delays and costs associated with probate court.

Do All Assets In A Living Trust Get Distributed Immediately?

Not necessarily. Our trust lawyer in Lithia knows that a living trust can include detailed instructions about how and when assets are distributed. For example, if a beneficiary is a minor, the trust may specify that their inheritance is held in the trust until they reach a certain age. Similarly, the trust might outline periodic distributions or conditions for receiving assets, such as achieving specific milestones like completing college. This flexibility allows you to design a plan that fits your goals.

How Does The Successor Trustee Handle Debts And Expenses Before Distributing Assets?

Before distributing assets to the beneficiaries, the successor trustee is responsible for settling any outstanding debts, taxes, or other obligations of the trust. This may include notifying creditors, paying final bills, and filing necessary tax returns. Only after these responsibilities are completed can the trustee distribute the remaining assets according to the terms of the trust. Proper planning and documentation can make this process straightforward.

What Happens If There Is A Dispute Among The Beneficiaries?

If beneficiaries disagree about how assets should be distributed, the successor trustee is expected to act as a neutral party and follow the instructions in the trust. The trust document’s clarity is key in preventing or resolving disputes. In cases where disagreements escalate, legal guidance may be necessary to mediate or resolve the situation. Clear communication and well-drafted trust provisions can significantly reduce the likelihood of disputes.

Do Retirement Accounts And Life Insurance Proceeds Get Distributed Through The Trust?

Generally, retirement accounts like IRAs and 401(k)s, as well as life insurance proceeds, are not directly distributed through a living trust unless the trust is specifically named as the beneficiary. These assets typically pass directly to the beneficiaries designated on the account or policy. It’s important to coordinate your beneficiary designations with your living trust to avoid conflicts or unintended consequences.

Get Legal Help For Your Trust

By creating a living trust, you gain control over how and when your assets are distributed, offering peace of mind for you and your loved ones. At Morton Law Firm, we are committed to helping you craft a living trust that meets your needs and protects your family’s future. Morton Law has 25 years of legal experience and can help you. Contact our trust lawyer in Lithia today to schedule a consultation and get started on securing your legacy.