Floridians often refer to a revocable trust as a “living” trust because of its use during your lifetime. A living trust, for example, serves as an estate planning tool that may also help you manage your assets now.
The Florida Bar notes that a trust may also prevent you or your property from coming under the care of a court-appointed guardian during an emergency. By creating the required legal documents, you may name a successor trustee to take over if you become ill or incapacitated.
SmartAsset notes that you may transfer real estate, stocks and cars to your trust. You may also retitle deeds from your name to your trust. After transferring your assets into it, you may leave instructions for a trustee to manage the trust.
Your trustee could perform duties such as collecting rent from your property and distributing income to the beneficiaries named in your trust. If you wish, you may list yourself as one of the beneficiaries. The instructions you provide for your trustee may outline how to use the funds to pay taxes and other bills.
After deciding which assets to transfer to your trust and who will serve as your trustee, you need to create instructions for managing it. By naming yourself as a beneficiary, you may instruct the trustee to distribute regular income to you.
Estate plans that include living trusts may offer a way to care for individuals and their assets. Trust documents could outline how trustees may use funds to pay for a beneficiary’s medical care. An illness, for example, could require expensive healthcare treatments. You may leave instructions regarding which health care services a trustee may pay from the trust’s funds.