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/">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/">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/">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.