What is a family trust?

A family trust is a type of legal arrangement in which one or more individuals, called trustees, manage and control assets on behalf of the beneficiaries of the trust. The trust can be established for any purpose, such as providing for the family’s financial security or even handling property rights and inheritance issues. In Washington, trusts are created through a written document that defines the trust’s purpose, the trust’s beneficiaries, and the trustees who are responsible for managing the trust. The person who creates the trust is called the grantor, settlor, or trustor. One of the main advantages of a family trust is the ability to pass assets on to family members without having to go through probate court. When an estate is being probated through a court, it can take years to settle it, and a large portion of the assets may be eaten away by probate costs and taxes. A family trust can help to prevent this problem. Assets placed in the trust can be accessed by the beneficiaries, but they are not subject to the same process or legal scrutiny that is required for settling through the court. A family trust can also help to protect the assets from creditors and to avoid certain taxes due on the estate. Trusts can provide financial security and protection to family members who are not able to manage their own finances. The trust document can also specify how the assets will be distributed among family members or to charity, making it possible to provide for others when a loved one has passed away.

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What is a family trust?

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