What is a family trust?
Any trust is a legally binding document that covers assets. In this case, a family trust covers assets during one’s lifetime and specifies how the items you’ve accrued will be divided once you pass away. Often this is considered something only wealthy people do, think ‘Trust Funds’, but this is a valuable tool for all income levels.
Who can set it up?
Often it’s the oldest member of your family, but anyone can get started on their own trust. Whoever chooses to set up their family trust, will be the ‘grantor’ – as they are granting their items to others. The next person who is important in this organization is the ‘trustee’ who is usually a family member or close friend who will follow the terms of your family trust in your place once you’ve passed away. Lastly, the ‘beneficiaries’ who will benefit from the ‘grantor’s’ gifting are the last members of the party in this situation.
When should you start one?
Times to begin a trust include:
- Succession Planning – for example with your family business
- Estate Planning – assets that are part of the family trust will not be part of the settlor’s estate upon his or her death
- Protecting the family – this will allow you to have specific money set aside to help family members in the event of your passing
- Keeping your items within your family only – items in a trust are not susceptible to divorce in court if gifted specifically to your children, should their marriage end in separation.
Why is it beneficial?
A trust is a simple document that is easy to prepare with help from your financial institution. It’s also an avenue to prepare for estate planning, which you’ll need an attorney for. You have the ability to change your family trust and its terms at any time. This working document gives you control over your assets, as the trustee must carry out your instructions exactly or face legal ramifications.
Mestayer Law Firm provides civil litigation for clients throughout the Gulf Coast area including Pascagoula, Biloxi, and Gulfport. If you are making future plans for your estate, then contact us today and let us help take care of every detail of your finances. Call us today at 228-762-1193 or visit www.pascagoulalaw.com. We are your legal experts! You can also visit our office located at 2128 Ingalls Ave. in Pascagoula, Mississippi. We look forward to talking with you!
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors, or mistakes.