Family trusts are designed to protect your assets and benefit your family members beyond your lifetime. A family trust, also known as a revocable living trust, is a legal document that takes legal title to your assets (e.g., investments, bank accounts, real estate, vehicles, and valuable personal property) during your lifetime. It also details the terms of distributing those assets after your death or incapacity.
You transfer your assets to the trust so the trust becomes the owner of those assets, not an individual person. You still have full control over and use of your assets, but those assets are now protected and managed for your family.
Why set up a family trust? For one, assets in trust avoid probate – the court process of distributing assets according to a will – saving you time and money. Also, it can offer creditor protection for your beneficiaries. For example, if a beneficiary named in your trust (e.g., your child) becomes divorced, their partners can’t claim any rights to the property in the trust.
A family trust also allows you to set aside money for special reasons, such as a child’s education or for a family member who’s unable to manage their own finances due to having special needs or suffering from an illness. The trust can also manage assets for family members who may spend money recklessly, rather than handing over the assets to those beneficiaries directly.
We’re here to help you protect your assets by guiding you to the right estate planning tools for your situation. Call us today at 617.299.6976 or send an email to mkarr@maheritagelawcenter.com to schedule a confidential, no-cost consultation.
