What is a living trust and how does it work?

A living trust is a legal document in Florida that sets out how an individual’s assets should be handled after they pass away. It is also referred to as a revocable trust or a trust agreement. The person who creates the trust is known as the grantor or settlor, and they have the power to change or revoke the trust at any time. The grantor also appoints a trustee, who is responsible for managing and carrying out the trust’s instructions. The assets that the grantor owns are placed in the trust and the trustee then distributes these assets to the beneficiaries listed in the trust. These beneficiaries can range from family members to charities. The assets in the trust are not subject to probate, meaning they do not have to go through the court system in order to be distributed to the beneficiaries. This can save time and money. The trust also avoids the need for guardianship if the grantor becomes incapacitated. The trustee can step in and manage the assets for the grantor until they are able to manage it again. This prevents the court from having to appoint someone to manage their affairs, which can be costly and time consuming. Living trusts can be used to protect assets from creditors and minimize estate taxes. Furthermore, they can be used to provide for minor children, disabled adults, and other beneficiaries who may be unable to manage their own affairs. Overall, living trusts are an essential estate planning tool that can help ensure that a person’s wishes are carried out after they are gone.

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What is a living trust and how does it work?

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