Law Office of Mary Alice Gwynn, PA
Trusts Can Be Useful for Leaving Assets to Younger Generations
Many people want to leave money or other assets to their loved ones after their passing. This type of giving can be done through one's estate plan, but it is important to use the right tools to ensure that the assets are used properly. Some Florida residents may want to use trusts to give assets to younger generations.
Many people may think that someone who has a trust fund is wealthy or entitled. However, trusts can be utilized by individuals of any income level. The grantor, or person creating the trust, can put funds or other assets into the trust and appoint a beneficiary. For instance, if a grandparent wants to leave money to help a grandchild through college, a trust could be a useful tool to designate funds for that specific purpose.
The beneficiary is the person receiving the assets from the trust. To ensure that the assets are used properly, a trustee is typically put in charge to manage the assets and distribute them to beneficiaries as intended. A trustee could be a loved one or someone from a bank or other institution who has professional experience in such a role.
Many people often have the wrong idea about the usefulness of trusts because they do think that it is a tool only for the wealthy. Because such misconceptions regarding estate planning tools exist, it is wise for Florida residents to gain information on their planning options before making any decisions. Discussing the idea of using this planning tool with estate planning attorneys may help interested individuals.