What is a private annuity trust?

A private annuity trust is a legal arrangement commonly used in Florida inheritance law. It is a type of trust that allows the trustor (the person who sets up the trust) to distribute assets to beneficiaries over time. The trustor will appoint a trustee to manage the trust and the assets within it. The trustor will then place their assets into the trust, with the intention of transferring it to the beneficiaries over time. The trustor also sets a specific timeline for when the payments need to be made. A private annuity trust is usually set up for the benefit of the trustor’s family, but it can be tailored to fit any individual’s needs. A private annuity trust offers many advantages. It allows the trustor to remain in control of their assets, as they can decide when payments are made to beneficiaries. Additionally, it can help save on taxes and potentially avoid probate court. Lastly, a private annuity trust allows the trustor to dictate how the beneficiaries receive payments from the trust. Overall, a private annuity trust is a legal arrangement that can provide many benefits to families in Florida. It enables the trustor to control how their assets are distributed and when, while also helping to keep taxes low and avoid probate court.

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