A family trust is an important tool for estate planning and protecting assets. It’s used to protect intergenerational wealth, avoid taxes, and provide financial stability during times of uncertainty. A family trust is also known as a testamentary trust or living revocable trust.
How Does a Family Trust Work?
A family trust is set up to help manage assets and protect them from creditors, taxes, and other claims. The creator of the trust, or grantor, will appoint a trustee who will oversee the distribution of assets according to the terms laid out in the trust document. The trustee has legal ownership over all assets in the trust and is responsible for managing these assets for the beneficiaries (the people named in the trust document who will receive the assets).
Benefits of Setting Up a Family Trust
Setting up a family trust can provide families with financial security and peace of mind. Some benefits include:
- Estate Planning – A family trust can help reduce taxes on estate transfers to heirs when the grantor dies. The assets in the trust are not included in the taxable estate of the grantor, so they won’t be taxed when transferred to heirs.
- Asset protection – Assets placed in a family trust are protected from creditors and other claims. This is especially important for assets such as real estate, which can be subject to high taxes and/or foreclosure if not properly managed.
- Financial stability – By placing assets into a family trust, they are safeguarded and can provide financial stability for future generations.
- Privacy – Assets in a family trust are kept private and not part of public records. This helps to keep the family’s finances and business affairs out of the public eye.
When Should You Set up a Family Trust?
It’s best to speak with an experienced financial advisor to determine if setting up a family trust is the right decision for you and your family. Factors such as age, health, financial situation, and estate planning goals can all help determine if a family trust is the best option. An experienced advisor can help you determine the best course of action for protecting your assets and ensure that they are managed in accordance with your wishes.
Work with us
Setting up a family trust is an important step in protecting your assets and ensuring their continued security for future generations.
At Robert Emmer with Silversage, we strive to provide the best possible advice when it comes to wealth preservation. We also understand the importance of setting up a strong foundation for long-term prosperity, which is why we offer comprehensive estate planning, investment strategies, retirement planning, tax optimization, gifting strategies, and more. Our team of experienced advisors can help guide you through the process.
Our goal is to provide you with financial confidence to relieve your stress and worry.
Let us show you how our wealth management services can be of assistance! Contact us today for more information.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author, and not necessarily those of Raymond James. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. Financial and investment planning inherently involve potential tax and legal implications, with which we are generally familiar. We do not, however, practice as lawyers or CPAs and cannot give specific legal or tax advice. You should always consult with your tax advisor, or your attorney, when making complicated legal or tax decisions, however, we’re glad to work with your tax or legal professional to help you meet your financial goals. Raymond James financial advisors do not render advice on tax or legal matters.