A family trust can make it possible to provide for your loved ones by gradually giving them portions of your estate, either while you are alive or after your death. The benefit to giving your assets to your loved ones through a family trust rather than a will or the probate process is the tax breaks that your trust, a taxable entity, can receive. With a family trust, the trustee, who is generally an attorney or a financial advisor, is tasked with keeping the assets safe and distributing them to the beneficiaries as determined by the creator of the trust, known as the settlor.
A family trust is used to hold assets, rather than allowing those assets to remain in the personal possession of the settlor. This can protect those assets from creditors if the settlor declares bankruptcy. The settlor has the right to determine the family trust’s distribution rules, which state when each beneficiary receives his or her share of the assets, how much he or she receives, and any circumstances that void his or her eligibility to receive them. You can also revoke your family trust at any time, unless you opt to create an irrevocable living family trust. In this case, you need a court order to revoke the trust.
A basic trust that allows you to remain in control of your assets, while protecting your loved ones in the event of your death or disability.
A trust which offers some protection from creditors, while allowing you to shield assets for the purpose of collecting Medicare.
Often referred to as inter-vivos, this type of trust is created through a will and goes into effect after your death.
This can be used to shelter assets to ensure Medicaid eligibility in the event you or one of your children is disabled.
Before you speak with a lawyer about creating a family trust, familiarize yourself with the steps of the process, as outlined below.
Contact The Law Offices of David L. Carrier, P.C. today to schedule your initial legal consultation with a member of our firm who can answer your questions about creating a family trust and guide you through this legal process.