Family Trust

Family Trust

A family trust is a specific type of trust established to benefit family members. It allows a person (the grantor) to transfer assets to a Trustee, who then manages those assets on behalf of the beneficiaries, typically family members. This arrangement helps with estate planning, Asset protection, and tax benefits.

Examples:

• Example 1: A parent sets up a family trust to hold the family home and investments, ensuring that their children receive the assets upon the parent’s death without going through Probate.
• Example 2: A grandparent creates a family trust to pay for their grandchildren’s education, with the trustee distributing funds directly to educational institutions.

Cases:

• Case 1: In Smith v. Smith Family Trust, the court ruled in favor of the beneficiaries after a dispute over the trustee’s management of trust assets.
• Case 2: In Johnson Family Trust, the court upheld the validity of a trust established to protect assets from creditors, allowing the beneficiaries to retain their inheritance.