2 Most Common Types Of Marital Trusts In Florida

Attorney Kellen Bryant explains that marital trusts in Florida are highly customizable, depending on the drafting attorney and the client’s specific goals. When setting up an estate plan, understanding the different types of marital trusts can help ensure your spouse’s future is well-protected.

How Marital Trusts Are Created

Marital trusts are designed to benefit a surviving spouse after one spouse passes away. These trusts can be tailored to suit individual needs and preferences. The key lies in the collaboration between the client and the estate planning attorney to establish terms that reflect their wishes.

The Two Most Common Types of Marital Trusts

1. QTIP Trust (Qualified Terminable Interest Property Trust)

A QTIP trust is a marital trust that provides the surviving spouse with income from the trust assets. However, the principal of the trust cannot be accessed by the surviving spouse for any reason. This type of marital trust is often chosen when the goal is to ensure that the assets ultimately pass to specific beneficiaries, such as children from a previous marriage, while still providing income for the surviving spouse.

2. General Discretionary Trust

A general discretionary trust offers more flexibility for the surviving spouse. Unlike a QTIP trust, the trustee has discretion to distribute principal as well as income to meet the spouse’s needs throughout their lifetime. This type of trust can be helpful if you want to ensure your spouse has access to resources beyond just income, especially in unexpected circumstances.

Comparing Marital Trusts to Credit Shelter Trusts

It’s important to distinguish marital trusts from credit shelter trusts (also known as family or bypass trusts). A credit shelter trust is a pool of funds that can be used as a last resort to support the surviving spouse. In contrast, a marital trust specifically sets aside assets to directly benefit the spouse, often with more structure and restrictions.

Contact Our Estate Planning Attorneys in Jacksonville, FL

Planning ahead provides peace of mind for you and your loved ones. To learn more about which type of marital trust is right for your situation, schedule an appointment with the Berg Bryant Elder Law Group in Jacksonville, Florida today. Let our experienced team help you secure a financial future that reflects your goals and protects your family.

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