What is a family trust?

A family trust is a legal agreement that is used to manage property and other assets for a family’s benefit. Established by an individual or family, this trust can be created during their lifetime or after death. Family trusts are managed by a trustee who has the responsibility to manage the trust assets and carry out the wishes of the trust creator. In Vermont, a family trust is also known as a “revocable living trust” and is set up to provide ongoing wealth management. This type of trust has numerous benefits, including avoiding the probate process, avoiding estate taxes, and providing for future generations. The most common kind of trust is a revocable trust, which allows the grantor to change the terms or revoke the trust entirely during their lifetime. With this type of trust, the grantor or “ Settlor” retains control of all assets, and can be used to manage their own wealth as well as the wealth of their family. A trust can also be used to secure a source of income for family members, or to hold assets for family members who are minors or have special needs. Another type of trust is an irrevocable trust, which is much harder to change and usually benefits a particular individual or family member. No matter what type of trust is chosen, it is important for family members to understand their roles and responsibilities. Contacting an experienced Trust and Estate Law attorney will help to ensure that the wishes of the trust creator are honored and that the document is drafted in the most efficient manner.

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What is a family trust?

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