What are the elements of a solid trust?

A trust can be a great addition to your estate plan. You can choose to either create a revocable or irrevocable trust.

Regardless of your decision, all trusts must have certain elements to be legally binding. You will also need to ensure that you follow all Florida laws when creating a trust.

People involved

A trust needs the trustor, which is you as the person creating it. The trustee is another party. This is the person who manages the trust and controls the assets after your death. The last party is the beneficiary, which is the person who will receive the assets in the trust after your death. The trustee and beneficiary must be two separate individuals. You will want to name the trustee carefully as this person has a lot of responsibility. He or she must be trustworthy and someone you can count on to properly manage the assets.

Intent of creation

You must completely understand what creating a trust means. You must know that once you place the assets in the trust, if it is irrevocable, that you no longer have ownership over them. Also in an irrevocable trust, you must clarify that you understand you cannot change the trust without following specific steps. With any trust, you must be at least 18 years old to create it. You also need to be of sound mind.

A trust is a great tool, but you want to be sure you create it properly. An illegal trust will do nobody good after your death and will likely lead to probate issues.