What is a family trust, and why is it important for most California families to consider? Generally speaking, a family trust, also known as a revocable living trust, allows the creators to place family assets, accounts, investments and closely-held business interests within the protection of a “trust”. Over time, you transfer the assets into the trust so that you personally don’t “own” them at the time of your passing (or that of your spouse or partner).
You still have complete control over the assets within your trust, and are free to use them however you choose during the course of your life. The family trust is a separate legal entity that protects the family home, business and wealth while allowing you to pass ownership to your beneficiaries with the least amount of tax exposure or cost.
There are many options for how your family trust would be established, how assets will be handled upon the passing of one or both of the creators of the trust, and how assets are to be managed. The cost of a family trust is much lower than the simple cost of probating almost any home here in San Diego, and provides peace of mind while preserving as much of the family wealth as possible for your beneficiaries.
We invite you to call the experienced estate planning, trust and tax attorneys at Allen Barron to discuss your unique circumstances and to learn more about the benefits and protections of a family trust. Call for a free and substantive consultation at 866-631-3470.