Aside from having insurance, one of the ways to make sure that your family is financially stable long after you are gone is through a family trust.
A family trust is a trust fund that is set up to benefit not you, but rather the members of your family. It involves a person (known as a trustee) owning a property for the good of another person (referred to as the beneficiary). A family trust works by having the trustee transfer his legal ownership to its beneficiary while having continued access to his assets as long as the deed permits. A family trust lawyer would be able to explain to you the ins and outs of trust. But for starters, here are some basic things you should take note of as explained by Rainey Collins Lawyers.
Questions to answer when setting up a family trust:
Who are the beneficiaries?
Beneficiaries play a huge role in a family trust. Members of the family, as well as future members (i.e., future grandchildren), can be recipients of a family trust. As a trustee, you can also apply to be your own beneficiary.
What assets should be up for transfer?
Technically, you can transfer any asset to a trust. However, the recommendation is to transfer appreciating assets (i.e., real estates and company shares) first. After that, you may transfer depreciating assets (i.e., vehicles, furniture). The kind of property you would transfer would highly depend on personal factors. Therefore, you must seek professional opinion.
How should you plan to establish your family trust?
You should design your family trust very thoroughly. One wrong move can lead to your beneficiaries losing all of their benefits. Minimise, or better, completely eliminate errors in technicality. It should be set up to function as intended. Therefore, it should be under the supervision of an expert attorney.
The concept of a family trust is simple. But the preparation has little to no room for mistakes. Make sure you plan it well. Find the best attorney in town to help you and your family.