What is a family trust?

A family trust is a type of trust that allows a person to set aside funds or property for themselves or their family, while still maintaining control of the funds or property. In a family trust, the person who sets up the trust is called a grantor, or settlor, and they select a trustee to manage the funds or property. The trustee can be a family member, friend, or professional fiduciary. The grantor and trustee are given certain duties and responsibilities to ensure everything is handled properly. Family trusts are typically created for the purpose of protecting family assets and preserving wealth for generations to come. The grantor is able to set out specific instructions for how the trust is to be handled and managed. This includes instructions for how the trust is to be distributed, such as to the grantor’s children or other beneficiaries. In Virginia, family trusts are governed by the Virginia Code and are subject to certain laws. The grantor must ensure the trust is created and administered in compliance with Virginia law and must appoint a qualified trustee to manage the trust. There are also certain taxes that may apply to trusts depending on the type of trust and the grantor’s residency. Family trusts are an important tool for estate planning in Virginia. They can be a helpful way to protect assets and pass them on to family members. It’s important for anyone considering creating a family trust to speak with an experienced estate planning attorney to ensure the trust is created and administered in compliance with Virginia law.

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