What is a family trust?

A family trust is a legal arrangement used by California residents to plan for and manage their assets and avoid probate. It is created when one person, known as the grantor, transfers their property or assets to another person, known as the trustee, to manage for the benefit of someone else, known as the beneficiary. The trust can be used to manage the grantor’s finances and assets while they are alive, and it can also manage assets and distribute them to designated beneficiaries after the grantor’s death. When setting up a family trust, the grantor will decide who will be the trustee and beneficiaries, how the trust will be funded, and when the trust terminates. The grantor will also provide instructions to the trustee about how to manage the trust and distribute the funds or assets. The trustee is responsible for following the directions in the trust agreement. They also have a fiduciary duty to act in the best interests of the beneficiaries and to manage the trust assets wisely. Family trusts are popular estate planning tools used in California as they can provide tax savings, protect assets from creditors, and keep assets out of probate. Additionally, the grantor has the flexibility to change the terms of the trust and the beneficiaries if needed. All in all, a family trust is a great way for California residents to manage their assets, protect them, and ensure that their wishes are followed after their death.

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What is a family trust?

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