What is a family trust and why should I have one?
What they most like have is a Revocable Living Trust. They place their assets into the trust, including their house, auto, and bank accounts. When they pass away, the trust becomes an Irrevocable Trust. At that point, the first Trustee, as named in the trust, is responsible to divide or assign the assets of the trust as designated in the trust. You usually have to set up a bank account for this with a tax ID. The bank can/wil help with this. Most trusts are boilerplate type things (standard) and require a 90 waiting period before disbursement. The Trustee is responsible for keeping track of expenses during that time, such as upkeep on the property, etc., because it affects taxes. A trustee would need the services of an accountant to file the proper tax forms at the end of the year. They’re pretty voluminous. As for the benefits, it prevents the property from going into probate, which requires court hearings, and assignments. It can also prevent arguments over the way things are handled
