What Is A Disclaimer In A Trust?
A disclaimer is a legal instrument that is signed by a disclaimant who states that they do not want any of the beneficial interest that they have in a trust. Once someone signs a disclaimer, they are treated as predeceased under the terms of the trust agreement and their interest will pass to the next in line named in the trust. The disclaimer is most commonly used when receiving a beneficial interest in a trust that would negatively impact someone’s current tax position and not the tax position of future beneficiaries. It is commonly used as a tax reduction and savings tool for families who are otherwise well-provided for and do not need the additional tax burden.
How Much Control Or Say Does A Trustee Have In The Estate Assets?
A trustee has a tremendous amount of control over an estate’s assets. In fact, the trustee is the sole signatory to conduct any business transactions, sales, purchases, investments, or distributions of trust assets. However, the trustee’s authority and power are limited by the trustee’s potential for liability against the beneficiaries and future beneficiaries. The trustee’s control is also limited by its fiduciary or legal responsibilities to the beneficiaries, which can include the duty to carefully manage trust investments and assets, provide an accounting to beneficiaries, follow the trust terms when making distributions or decisions, and maintain loyalty and trustworthiness by not partaking in self-dealing transactions for their own benefit. Generally speaking, the trustee has great authority when managing the trust assets. It is recommended that the trustee listens to other parties involved in the trust transaction, such as creditors and beneficiaries.
Can An Executor Of A Will Sell Property Without All Beneficiaries Approving?
In Florida, a personal representative under a will can sell real property or real estate without approval from the beneficiaries as long as the will itself affords them the power to do so. If the will does not state that the personal representative has the authority to sell the property, then the personal representative must go to court with notice to all the beneficiaries of their ability to challenge a sale. In Florida, if there is no power to sell in a will or if someone dies without a will, then the personal representative will need to give notice and the potential to challenge to the beneficiaries.
How Long Does An Executor Of A Will Have To Settle An Estate?
In Florida, a personal representative has 12 months from the date of appointment to settle an estate. The 12-month deadline can be extended for good reason and good cause. One such cause would be an inability to close or terminate the estate due to pending litigation, such as a wrongful death lawsuit or difficulties addressed during the course of probate administrations (complicated business assets, complicated beneficiary situations, or difficulty locating beneficiaries and other family members). If there is a trustee with higher levels of diligence and management skills, then the time to complete the estate settlement could be much shorter.
How Does The Creator Of A Trust Provide A Beneficiary Protection?
A creator or a grantor of a trust can provide the most amount of protection to a beneficiary through his or her ideas when drafting and establishing the trust. The creator of a trust always needs to consider systems of checks and balances. Under Florida law, a trustee has a fiduciary responsibility to manage the assets for the beneficiary’s benefit. If the trustee steals all the money and moves away, then the beneficiary will be put at a great point of weakness to recover the money, especially if the trustee spends it or it is otherwise unable to be located. This is why the creator of a trust needs to set up the checks and balances system to prevent such issues from ending up in court and to provide the beneficiary with adequate protection.
A common way to protect against the trustee’s bad actions would be to require the use of a bond, which is a type of insurance obligation that ensures that if the trustee were to take the money, the beneficiary could recover what was stolen from the bond company. Another option would be to require multiple co-trustees and multiple trustees’ joint decision in order to make a distribution to a beneficiary. If the beneficiary is a minor, disabled, or uncomfortable with financial and legal instruments, then the creator of a trust can name a trust protector in the document to monitor the trust or name an advocate for the beneficiary to monitor the trust. Additional roles can be created and appointed in the trust document in order to ensure adequate supervision and to prevent the beneficiary’s funds from being stolen.
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