What Is a Family Trust?

A family trust is the preferred over a will by many legal experts. It is instructions for the way in which your estate will be divided at your death. Surprisingly, a will does not do this. A will only tells the probate court what you wish to happen after your death. In truth, with a will, assets are divided as the probate court sees fit. A family trust is very different.

No Probate

Family trusts let your descendants avoid the lengthy and expensive probate process. Because you transferred your assets to the trust before dying, the trust owns the assets after death.

Give as You Please

Because they are incontestable, family trusts allow you to give away your assets as you see fit. It specifically names heirs , no matter who or what they may be.

Don't Lose Control

Contrary to belief, grantors (creators) and/or trustees of a family trust can buy, sell and trade the assets as they see fit. Only the title to the property belongs to the trust.

When You're too Sick

Family trusts name the person in charge of your assets even when you are too sick to handle things on your own. This can be either temporary or permanent, and is non-debatable.

Looks Like a Will

A family trust document does look like a will as it is a list of where your assets will go after death. However, a will is a suggestion, whereas a family trust is the legal owner of your assets.