A family trust, also known as a revocable living trust, is a legal arrangement that holds and manages inherited assets for the benefit of family members or beneficiaries. Unlike a will, a family trust allows individuals to transfer ownership of their assets into the trust during their lifetime, providing a seamless and private way to distribute assets as part of their estate plan.
Trusts are very useful tools, even for those with modest assets. Having assets under the umbrella of a trust can provide asset protection, guidance on distribution, and privacy of your assets upon executing your estate plan. A trust can be used in several ways to care for your loved ones after your death.
A trust can also ensure that funds available for your children’s needs for food, shelter, and education, and can protect the inheritance from others, including an ex-spouse, who may wish to gain financially from your dependents.
A family trust protects your assets by giving distribution instructions for beneficiaries when they reach a certain age – like 18. A traditional will distributes the assets in their entirety, while a trust can space out distributions to create accountability and encourage responsibility for a young adult coming into a large sum of money.
A family trust can protect your children’s inheritance from their creditors who attempt to recover a debt associated with your estate.
At CPM, we understand the significance of family trusts as a component of comprehensive estate planning. With a team of experienced trust and estate attorneys, the firm helps clients navigate the intricacies of trust creation, ensuring that their unique goals and family dynamics are considered. The personalized approach of Carlile Patchen & Murphy goes beyond mere document preparation. We work to gain a deep understanding of your financial situation and long-term objectives.
We also can guide you in choosing the right trustee to ensure that your wishes are properly and professionally carried out. We can assist the trustee and beneficiary in ensuring the trust is being properly administered according to the terms of the trust.