When it comes to your estate planning needs, trusts can serve as a valuable resource, allowing a third party to manage and hold assets to ensure a positive outcome for your beneficiaries. This is especially true of family trusts, which will enable you to provide the long-term well-being of your family members.

What Is a Family Trust?

A family trust is the same as a typical trust, with the distinction that the listed beneficiaries (or single beneficiary) are family members. In a revocable trust, the grantor can make changes to the included assets and beneficiaries, or even cancel the trust, after it is created.

A living trust typically falls under this category, with trustees not taking control until the grantor passes away or becomes incapacitated. These trusts provide the distinct benefit of allowing beneficiaries to bypass the probate process.

An irrevocable family trust cannot be canceled or altered after its creation. The grantor no longer has any control over their assets. These trusts are typically used by individuals with large estates, as it can help minimize estate and gift taxes. By being in the name of the trustee, the property is protected from potential creditors.

How Should You Set Up a Family Trust?

To set up a family trust, the grantor must create a trust document, which details all assets that will be allocated to the trust. This document names beneficiaries and trustees and gives specific instructions regarding the management. You must then execute the trust, which allows the transfer of assets to the trustee. Once assets have been transferred, the family trust is in full effect.

If you need assistance establishing a family trust or dealing with another estate planning issue, contact Pater, Pater & Halverson. Serving Hamilton, OH, since 1889, their team has built a reputation of honesty and integrity, and their current attorneys have over 90 years of combined experience. Visit them online to learn more about their services, or call (513) 867-1411 to schedule a consultation with a probate lawyer.