What is a construction trust?
A construction trust is a type of trust used in Florida inheritance law to ensure that contractors and subcontractors are paid for their labor and materials. These trusts are used in combination with payment bonds, which guarantee the payment of contractors by the property owner. The trust serves as a guarantee that the subcontractors will receive payment for their labor and materials even if the general contractor goes bankrupt or otherwise fails to pay them. In a construction trust, the owner deposits money into the trust fund account and the trustee holds the funds and distributes them to the contractors as payments are due. This allows the owner to ensure that the contractors and subcontractors get paid regardless of the financial circumstances of the general contractor. The construction trust is a useful tool for protecting contractors and subcontractors who do business with property owners. It helps to ensure payments are made on time and that the contractors are compensated for their work.
Related FAQs
What is anancillaryadministration?What are the roles of a trust officer, trust attorney, and trust accountant?
What is a surviving spouse’s right of election?
What are the rights of a surviving spouse?
What is a durable power of attorney?
What is a testamentary trust?
What are the requirements for a valid will?
What are the advantages and disadvantages of a living trust?
What is a non-judicial settlement agreement?
What is a living will?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023