Blind Trusts and Estate Planning in North Palm Beach

One of the most interesting things about estate planning in North Palm Beach is the sheer number of trusts available to the planner to employ in the appropriate circumstance. There seems to be a trust for virtually every scenario imaginable, and although this offers plenty of flexibility, it can also prove overwhelming for the average Florida resident. Many hear about certain trusts and have no idea what role they might perform. A “blind trust” is a common example of this, but it is actually quite straightforward despite its vague and somewhat mysterious name.

Blind Trusts Explained 

Many trusts establish  separate legal entities – putting you “beyond arm’s reach” of your wealth. A blind trust goes one step further, keeping you in the dark and providing no information about the management of the assets you have transferred. Once you move your assets into a blind trust, you will receive no communication about their status. You will also have no control over how the trustee manages the trust assets.

Why Would Anyone Want to Create a Blind Trust?

 A blind trust is a common tool for those who want to avoid conflicts of interest. For example, politicians who approach their new roles with significant assets are often required to transfer their wealth into blind trusts. In this way, they may avoid allegations of corruption. Otherwise, that politician may eventually be accused of taking steps that benefit companies they control or own shares in.

In the context of estate planning, blind trusts may also perform various functions. Your family may be unaware of how much wealth you have accumulated over the years – and you may want to keep it that way. Perhaps you worry that your loved ones will become spoiled or corrupted if they suddenly receive more wealth than they could have ever dreamed of.

In this situation, a blind trust allows you to support your loved ones after death – but without ever revealing the true extent of the wealth they’ve inherited. People often combine this strategy with spendthrift trusts, allowing for gradual distributions of wealth from your trust assets.

With a blind trust, your loved ones will not know when – or if – their distributions will end. This is because they have no way of determining how much wealth remains in the trust – or whether it is close to running out. As a result, they may be more inclined to generate their own sources of income and become successful – all while receiving reliable financial support.

Can a North Palm Beach Estate Planning Lawyer Help Me With Trusts? 

A North Palm Beach estate planning lawyer may be able to help you set up various trusts. If you have specific goals, the most logical approach is to discuss your situation during a consultation with one of these lawyers. Your estate planning attorney can then suggest various trusts that might help you achieve these goals. Begin this discussion today by scheduling your first consultation with Kitroser Lewis & Mighdoll.

Sources: 

investopedia.com/terms/b/blindtrust.asp#:~:text=A%20blind%20trust%20might%20be,such%20as%20graduating%20from%20college.

flsenate.gov/laws/statutes/2018/112.31425