What are family trusts?
A family trust is a trust that has been established for the purpose of passing assets to children or other heirs rather than to a surviving spouse. A lifetime, or inter vivos, family trust is a common technique used to avoid probate. A trust holds assets so that when you die, those assets will not be considered part of your estate for probate and possible estate tax purposes. A trust agreement permits you to set aside assets for the ultimate benefit of another person, called the beneficiary. In some cases, the beneficiary will receive income from the trust assets for life, while in other cases, he or she will receive principal from the trust. A family trust can be revocable or irrevocable. You may change or cancel a revocable trust whenever you wish. On the other hand, be very certain before you set up an irrevocable trust. Once established, it cannot be altered or canceled. What is a generation-skipping trust? A generation-skipping trust is a handy tool to use if you want to leave ass
