What are the required elements to create a trust?

On Behalf of | Feb 14, 2022 | Firm News |

A trust can be a useful part of yoru estate. It allows you to leave assets to someone without the concern of probate. You also can provide exact instructions for disbursement and use the trust to divide assets in ways that may be more difficult in a will.

According to the Florida Statutes, to have a legally valid trust, you must have a few important elements.

Your knowledge of the process

You must intend to create the trust agreement, which also requires understanding how it works and what it means to create the trust. The law also requires that you have the capacity to create a legal agreement. You must be of legal age and have the mental ability to understand you are entering into a legally binding situation. You also need to be aware of the consequences you create with the trust.

Name the right people

For a trust to be legal, you need all the players. That means you have a beneficiary of some type who will get the contents of the trust. The beneficiary does not have to be a person. It could be a charity or left to provide care for another person, an animal or even a property.

You also must name a trustee, who is the person who will manage and control the trust until all contents go to the beneficiary. The trustee cannot also be a beneficiary.

If you do not meet these requirements, then your trust is not legally binding under the law. You will open it up to challenges after your death when you are not there to handle the situation.