Why You May Want A Family Trust Instead Of A Will

When you hear about family trusts, you may think of ultra-wealthy families and trust fund babies. But family trusts are not just for the rich. If you have a revocable living trust instead of a will, the assets that are owned by your trust will not have to go through probate and will go to your heirs as you've outlined in the trust documents. In fact, you may want to talk with a Georgia Family Estate Planning attorney to decide if you need a trust instead of a will.

Some of the different types of trusts are:

• Revocable Trusts

• Irrevocable Trusts

• Asset Protection Trusts

• Special Needs Trusts

• Tax By-Pass Trusts

• Totten Trusts

• Constructive Trusts

You can build a trust when you wish to pass on your money to others, manage your estate taxes and shield your assets from creditors. A family trust is a specific type of trust that may be able to help you reduce or delay taxes, avoid probate and protect your assets.

This sounds quite similar to writing a will, but let’s look at why you may want a family trust instead of a will.

About Family Trusts

There are three parties involved with a trust:

• The Grantor: the person creating the trust 

• The Trustee: the person you designate to manage and administer the trust

• The Beneficiaries: the person or people who receive finances or assets from your estate

The assets of a trust are distributed through a trustee, allowing you to avoid the cost and time of probate court. A last will and testament is handled through the courts - costing you time, money and stress.

Benefits of a Family Trust versus a Will

A family trust (also called a living trust) is one of the most common and trouble-free ways to leave your assets to your loved ones. There are distinct benefits to establishing a family trust over a written will. Some of these benefits are:

• Avoid Probate

  Probate costs your loved ones time and money until they can receive the benefits you want them to have after your death. Going to court can take months, even years before your beneficiaries receive any assets or money from your estate. There are multiple filings, court delays, attorney delays, title company delays… you see my point.

• Privacy

  Once a will is in probate and in the courts, it becomes public knowledge. Having a trust offers you the privacy of not having the distribution of your assets known to everyone.

• Shield from Creditors

  After your death, any creditors must petition the courts for them to obtain any assets in the trust. This can be a lengthy and expensive process and one that some creditors avoid.

• Protect Financially Irresponsible

  In a trust, you can have a trustee distribute money over a period of time to an irresponsible loved one, rather than have them receive the money all at once. 

These are just a few of the reasons why you may want a family trust instead of a will. Talking with SmithTaire Legal will help you determine if a family trust is right for you.

Gwinnett County Estate Planning Attorney Jammie Taire

Planning your family trust doesn’t have to be a complex matter. We will talk with you to determine your wishes and the best way for your beneficiaries to receive your assets after you have passed away. If something happens that the probate courts must step in, we can also help with that. With 20 years of experience in estate planning, contact your experienced legal partner, Jammie Taire and the team at SmithTaire Legal.

Schedule an appointment with us today at 678-253-8133 to discuss your situation.