If you’ve been considering estate planning, and specifically a living trust, it may benefit you to consider a family trust. A family trust is a type of living trust, with the allocation of assets or funds being made to your named beneficiaries – family members – with certain conditions attached. The trust is managed by an appointed trustee who has the power to release the assets to the beneficiaries when the conditions of the trust are met.
As the grantor of this trust, you specify the beneficiaries, trustee and the terms of the trust. The trust can be used to ensure the financial security of the minor children and other family members who are otherwise unable to manage the funds on their own. Trusts can be structured to avoid estate taxes, and allow assets to transfer from your direct possession so you can qualify for pension and other benefits. With assets directly in a family trust, your family members avoid the need to probate your estate, subsequently saving time and money.
If you have children from a previous relationship, a family trust is a great way to provide for your surviving spouse and ensure that assets are passed on to those children. Reasons to set up a family trust include the release of installment payments at certain stages of the child’s life, such as college tuition or a down payment on a new home.
If you are considering a living trust, contact us today. We will discuss your situation and help you determine if a family trust is right for you.