Palm Beach Estate Planning Blog

As Palm Beach residents begin their estate planning, they will more than likely be confronted with numerous decisions to make. If it turns out that one or more trusts would work best for a particular situation, then one other decision will need to be made -- whether to make a trust revocable or irrevocable. The trust creator needs to decide whether it would be more advantageous to be able to change, modify or terminate a trust rather than not be able to do so.

Revocable trusts are quite popular. People like the idea of retaining more control over the trust and the assets in it. This provides the ability to fix any mistakes or tweak the trust provisions while the grantor (the trust creator) is still alive. One of the major downsides to a revocable trust is that the IRS, creditors and possibly an ex-spouse retain the right to come after the assets in the trust since the grantor remains the owner. However, this type of trust still provides privacy, the ability to avoid probate and the ability for someone to immediately take over in the event of incapacity.

Many Palm Beach residents go beyond a last will and testament when it comes to providing for their families after death. They also use trusts to pass on assets to loved ones in a more controlled, private and protected manner. Regardless of how carefully such documents are drafted, executed and funded, without the right trustee they may not be worth the paper upon which they are written.

This makes choosing a trustee one of the most important tasks for the trust creator, also known as the grantor. The first decision is whether to choose an individual or a company to serve in this capacity. More than likely, many Palm Beach residents will choose an individual. That person could be a spouse, child or friend. The main criteria is that the grantor has faith that the person chosen will abide by the terms of the trust, which are his or her wishes.

Some Palm Beach residents are under the impression that, once they execute an estate plan, they cannot ever change it. Fortunately, wills are not set in stone. One of the best things about estate planning is that it can change as people's lives do.

When an estate plan is set up, it reflects how a person's life is at a certain point in time. When children are born, couples get divorced or loved ones die, those changes could affect the plans one has already made. This may be why some people wait. Perhaps they believe that, after they are through growing their families and their estates, they should worry about drafting a will.

If you enjoy giving back to your Florida community by donating to your church or favorite charity, have you ever thought about establishing a charitable trust to give your donations more structure and certainty? If you are unfamiliar with charitable trusts, it likely will surprise you to learn that not only can such a trust benefit your church or charity, it also can benefit you in a variety of ways.

When you set up a charitable trust, you can split the assets you put into it between your designated charitable beneficiary and a designated noncharitable beneficiary, who can be you yourself if you so desire. In addition, you can designate yourself as your trust’s trustee.