A family trust, also known as a revocable living trust, is an estate planning arrangement in which a property owner transfers ownership of specific property into the trust while they are still alive. When they pass away, their ownership automatically goes to the beneficiary they've named. There are numerous benefits that go along with having a family trust. Four of these benefits are explored in more detail below.

How a Family Trust Can Help You

1. Avoid Probate

When a person dies, their estate must go through a legal administrative process called probate. This process verifies the validity of the deceased's will and oversees the distribution of assets. Probate can be lengthy, involved, and costly. Fortunately, a family trust entirely avoids probate. The transfer of property ownership occurs without the interference of the courts and happens much faster—and with considerably less cost and complexity—than an arrangement that must pass through probate.

2. Decrease Tax Liability

Yes, even in death, a person has to pay their taxes. One way to diminish tax liability for your estate and heirs is to set up a family trust. Trusts of this type are not subject to estate and inheritance taxes, which can be another final gift to leave your loved ones. Bear in mind, however, that a family trust cannot circumvent the federal gift tax.

3. Prevent Legal Challenges

From a legal perspective, a family trust is airtight. It's incredibly difficult for someone to file a legal challenge against your estate when you've set up a family trust. Your plans and wishes for your property are virtually indisputable. Anyone wanting to contest the terms of a trust would find themselves in an unwinnable legal battle, meaning peace of mind for you and less stress for your heirs.

4. Maintain Confidentiality

A standard will is a matter of public record. After your death, anyone can go to the local courthouse and request a copy of your will. But the terms of a trust are always kept confidential. In an age where privacy concerns are more prevalent than they've ever been, this keeps sensitive information private and securely within the boundaries of the family.

The above is just a sampling of the many ways a family trust will safeguard your estate, beneficiaries, and the legacy you ultimately leave. Let the attorneys at Arnold & Stafford help you design the trust that best meets your needs. Based in Hinesville County, GA, this legal team serves clients in Georgia, Florida, California, Hawaii, and Iowa; their practice areas include estate planning, vehicle accidents, criminal defense, and family law. Call (912) 369-4529 or visit them online to schedule a free initial consultation.