Strategies to Include Long-Term Flexibility in Florida Trusts

Planning for the unknown is an important skill that comes into play in many areas of life – and it can significantly impact estate planning. Particularly when it comes to building the appropriate trust for your estate – it can be essential to think through the “what ifs” and anticipate the unexpected happening. Intentionally building an estate plan that includes a trust with long-term flexibility can help to ensure that your intentions and desires for distribution of your estate are carried out as you would want, even after you are gone – come what may.

Unforeseen Variables: Taxes and More

No one can control the wider-world facts that times change, circumstances change, and no one can see into the future to anticipate long term inevitable changes in tax law or any other important aspect that could impact the distribution of your estate. Even less predictable are the unanticipated changes that are sure to come in your family and friends’ lives. While unforeseen change is inevitable, building maximum flexibility into your estate and trust can help to ensure that your trust can appropriately adapt to account for whatever comes.

Every estate and estate plan should be built with the understanding that tax laws are subject to change. Tax law is a very important factor in estate building, and how an estate plan is built can be heavily affected by the terms and limitations of whatever tax laws are in place. Possible changes in tax laws make it very beneficial and wise to build an estate plan that can adapt effectively to changing tax laws. Otherwise, your beneficiaries could face challenges you never intended.

Tax laws are far from the only variable subject to change – people and family circumstances are heavily subjected to change as well. Unexpected early death, divorce, remarriage – it is wise to consider in your estate and trust planning that unexpected change is probably going to happen. No one wants their legacy to be misused, or passed on to someone other than the beneficiaries you want your estate to pass on to.

Fortunately, there are some strategies you can implement to ensure flexibility in your trust.

Trustee Discretion

A trust can be drafted to grant a great amount of discretion to the trustee. This can limit the amount that any given beneficiary is entitled to, and lend more discretion for decision making to the trustee themselves.

These discretionary trusts can be helpful when there is a potential for beneficiaries to erode trust assets due to things like irresponsible behavior or poor money management skills. In a more discretionary trust, beneficiaries have lesser or no property interest in the trust. They do have an “expectancy.” In a discretionary trust the trustee has more power and discretion to decide how and when assets are given to the beneficiaries. With this power, it can also be important to build in certain rules and guidelines for the trustee to abide by.

Decanting

Florida allows for the distribution of assets from an old trust into a new one. The new trust might reflect changes in the family, or give more favorable terms than were provided in a prior trust, etc. This is a complex issue that one of our esteemed will & probate attorneys at Suncoast Civil Law would be happy to discuss and implement into your estate plan with you.

Contact Suncoast Civil Law

The Sarasota wills & probate attorneys at Suncoast Civil Law know how important it is to make decisions that will result in the long-term fulfillment of what you want most. Contact our experienced team today to begin building a flexible estate plan that can best adapt to whatever the road ahead has in store.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/Sections/0732.502.html

irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-businesses