Jacksonville Probate Lawyer

Trusts and Their Role in Probate

Trusts are a key part of estate planning. They help individuals manage their assets, avoid probate, and control how their property is distributed. The two main types of trusts—revocable and irrevocable—have different advantages depending on your needs.

Revocable vs. Irrevocable Trusts

Revocable Trust:

• Can be changed or revoked by the grantor at any time.
• The grantor retains control over the assets.
• Avoids probate after the grantor’s death.
• Provides flexibility but does not offer tax benefits or creditor protection.

Irrevocable Trust:

• Cannot be changed or revoked once established.
• The grantor gives up control over the assets.
• Offers benefits like tax savings, creditor protection, and Medicaid eligibility.
• Used for long-term planning, asset protection, and reducing estate taxes.

Both trusts help avoid probate, but choosing between them depends on your goals.

Trust Administration

When the trust creator passes away, a trustee manages the trust according to its terms. Key steps in trust administration include:

• Managing Assets: The trustee oversees the assets in the trust.
• Paying Debts and Taxes: The trustee must settle any outstanding bills or taxes.
• Distributing Assets: The trustee distributes assets to beneficiaries as instructed in the trust.

Since trusts avoid probate, this process is often quicker and more efficient than going through the court system. However, trustees must still follow legal guidelines and act in the best interests of the beneficiaries.

Executor vs. Administrator: Understanding the Difference

The roles of executor and administrator are vital in the probate process. Here's how they differ:

Executor

• Named in a valid will.
• Carries out the decedent’s instructions on asset distribution.
• Responsibilities include:
  • Probating the will: Filing it with the court.
  • Gathering assets: Taking control of the deceased’s property.
  • Paying debts and taxes: Settling liabilities.
  • Distributing assets: Ensuring beneficiaries get their inheritance.
• Must act in the best interest of the estate and its beneficiaries.

Administrator

• Appointed by the court if there is no will or executor.
• Performs similar duties as an executor but follows state intestacy laws to distribute assets.
• Responsibilities include:
  • Locating and securing assets: Protecting the estate’s property.
  • Paying debts and taxes: Settling outstanding bills.
  • Distributing assets: Dividing the estate per state laws.
• Overseen by the court to ensure compliance with the law.

Both the executor and administrator must manage the estate properly and may need legal help to navigate the process.