Are you preparing a testamentary trust to serve as a will substitute in West Palm Beach? Do you know how to protect your family’s wealth from creditors, mismanagement and more? Here are three things to consider while you draft your trust charter.
Spendthrift Provisions
- A spendthrift provision is a great thing to put into your West Palm Beach trust.
- Do you know why?
- A creditor normally can claim a right to beneficiaries‘ rights to distributions.
- Furthermore the beneficiary could even sell these off to the highest bidder before they become due.
- This does not seem preferable.
- Spendthrift provisions prevent this.
- With a spendthrift provision a beneficiary may be able to promise to a creditor but its not enforceable in a court in West Palm Beach.
- Enforcement is everything here.
- These clauses are good for making sure that your trust’s intent is not defeated by creditors and young trust fund rich kids acting recklessly.
Co-Trustees
- Are you considering a family member trustee?
- Have you considered using co-trustees?
- Many think that this can clog up administration but unanimity is not needed in West Palm Beach trusts.
- Simple majority rule will do just fine.
- Why have more trustees?
- Oversight is always good.
- Consider multiple trustees to make sure everything is going to plan!
Pour Over Wills
- One cool thing that you can do through West Palm Beach and Florida’s Probate Statutes is the creation of a pour over will and trust combination.
- This is one exception to the general rule that all trusts are invalid until funded.
- You can form one of these when you execute your will and fund it upon death!
- This is also a great way to avoid the costs and time of probate.
- This is so because your pour over trust will be the sole beneficiary or the main beneficiary at least in your will!
- Another great thing about a testamentary trust is privacy!
- Your Will will become public record but not your trust!