What is a perpetual trust?
A perpetual trust is a type of trust that can be set up for an indefinite amount of time. In Florida, perpetual trusts can be used to pass down generational wealth to future generations. This type of trust can also be used to protect assets from creditors and keep them out of the taxable estate. When a perpetual trust is set up, it has the capacity to exist in perpetuity and no one can legally terminate it. The person who creates the trust is referred to as the “grantor.” They are responsible for choosing the trustee, designating the beneficiaries, and specifying the trust’s terms. Because the trust will last forever, the grantor may need to have the terms reviewed periodically to keep them up to date and reflect changes in the law. The trustee is responsible for managing the trust’s assets and ensuring that they are distributed according to the wishes of the grantor. Beneficiaries may receive income from the trust, such as investment returns, and may also be able to access the principal if specified in the terms. With permanent trusts, the grantor can often plan to maintain control over the trust’s assets even after they have passed away. Inheritance laws in Florida can be complicated, so it’s important to consult with an attorney if you have questions about setting up a perpetual trust. A lawyer can help you understand your options and ensure that your trust is set up in a way that is compliant with state and federal laws.
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