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Establish Customized Trusts In Stuart With A Seasoned Attorney

If you are about to go through the estate planning process, you may be wondering if you need a trust. You might even be unsure about what a trust is and why it’s important. If so, you are not alone. While trusts are a powerful and reliable way to achieve some important estate planning goals, they are not necessary or desirable in all cases.

One of the best ways to know whether a trust is right for you is to consult with an experienced lawyer. When you contact Erin Kirkwood Law, PLLC, you will receive practical advice and guidance from an estate planning lawyer who truly cares about your needs and goals. Attorney Erin Kirkwood will empower you to make informed decisions that protect you and your loved ones’ best interests.

Trusts: A Basic Overview

When you create a will, you are leaving a record of your assets and instructions about who should receive them when you pass away. A trust is a legal instrument that can accomplish the same outcome, but it gives you much more control over how, when and under what conditions your assets should be distributed to your chosen beneficiaries.

Trusts are highly customizable and are often created to meet specific goals. As just one example, if you have a son or daughter who suffers from a disability and will not be able to live with full independence as an adult, a special needs trust can be created to provide supplemental financial assistance over a period of years or a whole lifetime.

The Estate Planning Benefits Of A Trust

If created carefully and correctly, trusts can achieve numerous estate planning goals, including the following:

Avoiding probate: You can avoid or greatly simplify probate because assets put into a trust are no longer considered to be “estate” assets.
Tax efficiency: You can reduce estate taxes.
Asset protection: You may be able to protect assets from creditors to ensure they pass to your intended beneficiaries.
Blended family protection: If you have children from more than one marriage or relationship, trusts can protect the inheritance rights of any children whom you name as beneficiaries (so they don’t need to rely on the goodwill of a stepparent).

These benefits are in addition to any other specific purposes for which the trust was created. Erin will take the time to discuss your needs and wishes, including what and who you want to protect. If appropriate to meeting those goals, she will help you create a customized trust that gives you considerable control over the future distribution of your assets.

Types Of Trusts Offered

Because every family’s financial situation and goals are different, Florida law allows for a variety of trust structures. Erin will assess your specific circumstances to recommend the right tool for your needs.

Revocable Living Trusts

A revocable living trust is one of the foundational documents in a comprehensive estate plan. It lets you retain full control over your assets while you are alive, and you can change or cancel the trust at any time. The primary benefit is that assets held in this trust do not have to go through the probate process, which can be public and time-consuming. This also allows for a private and efficient transfer to your heirs.

Irrevocable Trusts

Unlike revocable trusts, an irrevocable trust can be more difficult to change once created. It permanently removes assets from your personal estate, which means you will give up your right to access them. While giving up control may seem like a drawback, it is what helps shield your assets from future lawsuits and creditors. This can be extremely beneficial if you are concerned about estate taxes, long-term care costs or professional liability.

Spendthrift Trusts

In some cases, your intended beneficiary may not be ready to manage a large inheritance. Perhaps they may be too young or they may be facing certain complicated personal challenges. A spendthrift trust offers a solution. Rather than distributing the inheritance in a lump sum, this type of trust can distribute funds or assets slowly over time or only for specific needs. This ensures that the funds remain a reliable safety net for their future.

Trust Formation And Funding: Setting Your Trust Up For Success

Creating the trust document is only the first step. For a trust to work, it must be properly “funded.” This means that you must re-title your assets, transferring their ownership from under your name to the name of your trust.

Many people create a trust but fail to maintain it properly, which can lead to the very probate court they tried to avoid. Erin can help you avoid common pitfalls such as:

The “empty” trust: This means signing the trust document but never changing the titles on bank accounts or real estate. An empty trust offers no protection.
Refinancing errors: Lenders may require you to remove your home from a trust to refinance a mortgage. It is common to forget to deed the property back into the trust once the refinance is complete.
Overlooking new assets: This can be buying a new car or opening a new account years after creating a trust but then forgetting to title it in the trust’s name.

Erin will ensure your real estate deeds are properly prepared and recorded. She will also provide you with clear instructions that you can take to your bank and financial advisers. This ensures that every asset is properly titled and your trust works exactly as intended.

Trust Administration: Support For Trustees And Beneficiaries

Serving as a trustee is a “fiduciary duty.” This means you are required by law to manage the trust assets solely for the benefit of the beneficiaries. Whether you are a family member or a professional, mistakes in this process can lead to personal financial liability.

At Erin Kirkwood Law, PLLC, family and professional trustees can receive assistance with:

Required notices: Preparing and serving statutory notices to all beneficiaries
Trust accounting: Assisting with the detailed financial record-keeping required by law
Asset management: Advising on the prudent investment and management of trust property
Distributions: Ensuring assets are distributed correctly according to the specific terms of the trust

If you have been named the trustee for a parent or spouse, you may feel overwhelmed by the responsibilities that come with this role. Erin will guide you through the process step by step. She can also act as a buffer between you and the beneficiaries if necessary. Erin also serves as legal counsel for banks, trust companies and private fiduciaries. Learn more about the trust administration process here.

Modifying Or Terminating A Trust In Florida

Life changes, and sometimes, your estate plan needs to change with it. A trust that worked 10 years ago might not work today. The process for updating it depends entirely on the type of trust you have. For revocable trusts, modifying them is usually straightforward. As long as you are mentally competent, you can change it at any time. This is usually advisable when:

A child or grandchild is born
A beneficiary passed away
You want to change the designated trustee
You are planning to buy or sell major assets

Erin can help you with either drafting a trust amendment for small changes or a restatement, which is a complete rewrite that keeps the original trust name and date.

Irrevocable trusts, on the other hand, are meant to be permanent. However, “permanent” does not always mean “impossible to change.” Florida law recognizes that circumstances can change in ways the original creator never anticipated. You may be able to modify an irrevocable trust if:

Tax laws have shifted
The trust has become too expensive to administer
A beneficiary has developed a substance abuse issue that puts the assets at risk

Erin can guide you through specific legal avenues to fix a “broken” trust. If the trustee and all beneficiaries agree, you may be able to create a nonjudicial settlement agreement. She can also help you explore judicial modifications, which involve asking a judge to approve necessary changes. Another option is “decanting,” which allows the trustee to move assets from the old, restrictive trust into a new, modern trust with better terms.

Why Choose Erin Kirkwood Law, PLLC, For Your Trust Needs?

Creating a trust requires more than just filling out forms. It requires a partner who understands your family dynamics and the local legal landscape. Clients in Stuart and Martin County work with Erin Kirkwood Law, PLLC, because their case receives:

Deep local insight: With 30 years of legal experience in the Treasure Coast, Erin understands the specific needs of the residents who live here, as well as the families who choose this area to put down roots.
An ongoing professional relationship: Erin does not just hand you a binder and say goodbye. She is available for future questions, amendments and administration support as your life evolves.
Compassionate attention: Erin treats every client with the warmth and patience of a neighbor. She encourages questions and will take the time to give you detailed answers so you fully understand your plan.

Whether you are in Stuart and prefer an in-person meeting or you are an out-of-state resident needing a virtual consultation, Erin provides the same high level of personal service. She is committed to making the process as accessible as possible for you.

Frequently Asked Questions

Knowing that you may have questions, Erin Kirkwood Law, PLLC, is here to provide valuable answers and insights at this time. Here are some of the questions the firm sees most often:

How does a revocable living trust work?

A trust can be used to hold or control assets, helping to keep the distribution process private and designate beneficiaries when the person who created the trust passes away. A revocable living trust can be altered during that person’s lifetime, providing significant flexibility. The trust can be updated to reflect those changes if life circumstances change.

Do I need a trust if I already have a will?

Potentially. A trust can accomplish things that a will cannot. For instance, minors often cannot inherit until they turn 18. Leaving them financial assets in a will isn’t viable, but those assets could be placed into a trust, which holds and protects the money until the intended beneficiary is old enough to receive it. A trust can also specify how the money should be distributed or used.

Can a trust be contested?

Yes, but not by just anyone. The person contesting the trust must have proper legal standing, meaning the trust must affect them in some way. They may be a beneficiary of the trust or another part of the estate plan. They may also be a creditor. To contest the trust, they must have something to lose or gain based on the outcome of the estate plan and the use of the trust.

Schedule A Free Trust Consultation

Attorney Erin Kirkwood offers knowledgeable legal advice and compassionate guidance to clients going through the estate planning process. If you have questions or would like to know more about how she can help you, contact Erin to schedule a free 30-minute consultation at her office in Stuart. You can reach out online or call the firm at 772-732-8863.