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Kari L. MacDonald, P.A.

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Trust - Frequently Asked Questions

 

Q:  What is a trust and are there different types of trusts?

A trust is a fiduciary relationship in which one party, known as a grantor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

 

Q:  What is a “living trust”?

A trust that is created and funded while you are alive. When created, a living trust can be revocable or irrevocable. Most people choose to form a revocable trust because you can still make changes to the trust, including adding or taking out property, selling property, or even terminating the trust.  An irrevocable trust is just that:  irrevocable, meaning you can’t make changes to it. 

 

Q:  Why should I form a trust? 

There are many reasons to form a trust; some of them are listed below:

  • Avoid Probate. Because your living trust is a private contract between you and the trustee (the person administering the trust) any assets titled in the name of your trust at the time of your death will avoid probate.
  • Distributions made to the beneficiaries is usually faster because the distributions don’t go through probate. 
  • Privacy.  When your assets are distributed according to the terms under the trust, your estate is generally settled without being filed through the probate court, thus the process is more private.  However, it won’t remain private if any of the beneficiaries get into a legal dispute. 
  • Your beneficiaries will usually spend less money.  Probating an estate is very costly in terms of time and money.  Usually, the legal fees involved with forming and administering a trust are less than the cost of probate. 

The Law Office of Kari L. MacDonald

 

Tel:  813.655.1075
Fax:  813.681.9589

634 E Bloomingdale Ave
Brandon, FL 33511

info@klmlawoffice.com

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