What is a family trust?

A family trust is a legal document in which a person, called a “trustor”, transfers ownership of assets, such as money, real estate, or stocks, to another person, called a “trustee”. The trustee holds the assets for the benefit of a designated group of people, called “beneficiaries”. A family trust is a type of trust in which the trustor transfers assets to the trustee for the benefit of the trustor’s family. Family trusts are commonly used in Washington to transfer property from one generation to the next, to manage assets during the trustor’s lifetime, and to direct the distribution of assets after the trustor’s death. Creating a family trust typically involves creating a trust document that explains the trustor’s wishes for how the assets will be managed and distributed. This document then needs to be signed by the trustor and witnessed. The trust then needs to be funded with assets, and the trustee needs to be appointed. Finally, the trust needs to be registered with the appropriate government agency in Washington. Family trusts offer many advantages, including asset protection, tax efficiency, and the ability to pass on assets from one generation to the next without going through probate. However, creating a family trust is a complex process that requires the help of an experienced attorney. An attorney can help ensure that the trust is set up correctly to achieve the trustor’s desired objectives.

Related FAQs

What is a family trust?
What is a pour-over will?
What is a special needs trust?
What is a revocable trust amendment?
What is a power of attorney?
How do I amend or modify a trust?
How do I wind up an estate?
What are the requirements for creating a trust?
What is a trust deed?
What is a spendthrift trust?

What is a family trust?

Related FAQs

Related Blog Posts