Is an irrevocable trust in Florida an effective asset protection tool?

An irrevocable trust in Florida is an effective asset protection tool when drafted correctly and used in the appropriate circumstances. Property held in an irrevocable trust is usually protected from the creditors of an individual who is a beneficiary of the trust.

How can I protect my assets in a Florida estate plan?

Your basic estate planning. Make sure you have a good estate plan, such as creating a revocable living trust and a great durable power of attorney prepared by a Florida elder law attorney. These documents will allow your assets to be protected by a good elder law attorney, even in a crisis.

Is a revocable living trust an asset protection device?

But a regular revocable living trust is not an asset protection device.But, if you want to help ensure that your children receive an inheritance, then creating an irrevocable asset protection trust may be a good option. Here is an example of this type of trust:

Can a trust protect a beneficiary from creditors in Florida?

Florida’s trust statute includes two exceptions to spendthrift protection. First, the statute prohibits a trustee from withholding a distribution otherwise due to be paid to a beneficiary solely to protect the distribution from the beneficiary’s creditors.

What happens to trust assets after death in Florida?

If the trust assets remain in trust after your death, the interests of the beneficiaries may be protected from their creditors by a “spendthrift” provision in the trust agreement. Florida law provides special protection for many types of assets, including assets owned by a husband and wife as “tenants by the entirety.”

Who is an indispensable party in a Florida Trust Action?

Who Is An Indispensable Party In A Florida Trust Action? “Generally, the only indispensable parties to a trust action – including modification – are the trustee, the settlor, and the beneficiaries.”

What are the exceptions to Spendthrift protection in a Florida Trust?

Florida’s trust statute includes two exceptions to spendthrift protection. First, the statute prohibits a trustee from withholding a distribution otherwise due to be paid to a beneficiary solely to protect the distribution from the beneficiary’s creditors. Overdue mandatory distributions can be garnished from a spendthrift trust.