Putting your assets in a trust is the best way to protect them, but with so many different types of trusts it can be difficult to determine which is best for your situation. Trusts shield your assets from probate court and can reduce estate and gift taxes. They also allow you to apply conditions to your assets in regards to how they are distributed after your passing.
What exactly are the differences between a family trust and living trust? This article helps break down the pros and cons of both.
Key differences between Family and Living Trusts
- Living trusts allow a grantor to decide how assets are handled before and after death.
- Family trusts are intended to live beyond the grantor’s life, enabling it to distribute assets based on designated milestones.
- A Living Trust can distribute assets to anyone named a beneficiary when the grantor dies. This can include family, alma maters, charities, pets, and more. Family trusts are intended only to benefit the family members of the grantor.
If you have more questions about the different types of trusts and which is right for you, contact Rhodes Law Firm today to learn more!