What is a family trust?

A family trust is a legal instrument used to manage family assets, such as property or investments, in order to benefit one or more members of a family. These trusts can be established for different purposes, such as providing for a spouse, minor children, or other family members. In Texas, a trust can be created through a legal document that sets out the terms of the trust, designates the trustee to manage and distribute the assets, and specifies the beneficiaries who will receive the benefits. Typically, the trust document will also include specific directions from the person who created it. These directions determine how the assets will be managed, how the income is to be distributed, and what happens to the assets when the trust ends. Additionally, in Texas, family trusts may be revocable or irrevocable, depending on the specific terms of the trust. Revocable trusts allow the creator of the trust to control the trust’s assets and change its terms during his or her lifetime. In contrast, irrevocable trusts irrevocably transfer ownership of the trust’s assets to the trustee and cannot be changed by the creator. Family trusts can be a beneficial tool for ensuring family assets are managed and distributed according to the desires of the creator.

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