What is a family trust?

A family trust is a type of legal agreement in which one or more people, called trustees, hold legal title to property on behalf of the beneficiaries, usually members of the same family. The trust document outlines the exact terms of the trust, including instructions on how the trustees will manage the property, how the property will be distributed, and who will be the beneficiaries. In California, there are two types of trusts that may be set up: revocable trusts, which are flexible and can be changed or revoked at any time, and irrevocable trusts, which are more permanent and cannot be changed or revoked. Family trusts are often used to manage the distribution of assets to family members. For example, a family trust may be set up to provide for a minor child’s education or to distribute funds to family members upon the death of the trust creator. A family trust can also be used to help reduce tax liability and provide some protection against creditors. Because of the complexities involved in creating and managing a family trust, it is important to seek the advice of an experienced trusts and estates attorney in California. An attorney will be able to advise you on the best way to set up and manage a family trust to ensure that the trust creator’s wishes are followed and the beneficiaries are properly provided for.

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