Family Trust vs Living Trust - Everything You Need To Know
Managing your finances, properties, and other belongings can help you create stability and security within your family. For this reason, it can be incredibly important to decide how you would like to divide those assets amongst them at the appropriate time.
A family trust basically consists of any living trust which is intended to benefit your family members specifically- and with the help of DoNotPay you can now create a revocable living trust behind your computer or phone! Keep on reading to discover how!
How Exactly Does A Family Trust Work?
- Just like any living trust, a family trust would contain a list of all the assets you want managed by the document.
- You would then name a trustee, which is the individual who will handle the distribution of all the assets as per your requests (many people choose to name themselves as a trustee, and this is perfectly viable).
- The living trust would also detail a list of your beneficiaries, in the case of a family trust this would of course be your family members.
- The document would detail which assets are intended for which family member and any additional conditions, requests or specifications.
Understanding Why A Living Trust is Better Than A Will
Here are some of the key reasons that creating a living trust is much more effective and convenient than managing your assets through a will:
- Although most people think of planning for their family’s future by creating a will, this type of estate planning is subject to probate after the person passes away.
- This means that a legal document has to go through the courts so that it can be verified as valid, and depending on the specific case in question the process can take anywhere from 6 months to 2 years.
- By contrast, a living trust is not subject to probate, and would allow your assets to be distributed immediately. This would ensure that your family does not have to go through the hassle of court proceedings.
Retaining Privacy Over Your Assets
- Once a will is filed with the probate court so that it can be validated, the will automatically becomes a public record.
- This means that the details of your assets, as well as their distribution will become public knowledge.
- Depending on the extent of your assets you might be concerned about safety, outsider opinions, or simply retaining your family’s right to privacy from the public. A trust skips the court process altogether and always remains private information.
- Therefore, family trust is a much better option when it comes to privacy.
Distributing Assets During Your Lifetime
- A will is only meant to distribute assets after your death, but it can do nothing about passing on assets to a family member or loved one while you are still alive.
- Whether you have a business that you are ready to pass down to your children, financial assets that you want your spouse to have authority over, or a property you want to give to another family member - creating a living trust can help you achieve these things during your lifetime.
Should My Family Trust Be Revocable or Irrevocable?
- A revocable trust would allow you to make changes to your family trust over time, whereas an irrevocable trust cannot be changed or edited in any way and becomes final the moment it is signed before a notary.
- If you choose an irrevocable trust, you will automatically lose ownership of all of the assets within the document. If you want to still have a say in your properties, finances and other assets then an revocable trust is more viable.
How DoNotPay Helps You Create a Living Trust For Your Family
DoNotPay is a fast, effective and legally conscious method of creating your living trust document. It can spare you not only the hassle of figuring out how to do it on your own, but also the fees of having an attorney do it for you! Follow these easy steps to get your revocable living trust now:
- Log-in to DoNotPay and search for “Revocable Living Trust”
- Select your state of residence
- Tell DoNotPay who your trustee of choice is - you can add a secondary trustee as well
- Tell DoNotPay who your beneficiaries are and what they will be getting
- Tell us the state the document will be notarized in
That’s it! DoNotPay has got the rest! You’ll receive a downloadable PDF of your trust. Take it to your notary to get it finalized!
Can DoNot Pay Make A Family Trust Addressing The Specific Laws of My State?
Absolutely! DoNotPay uses your state of residence when creating your trust revocable living trust, and ensures that all the legal details are relevant and up to date. Our robot- lawyer can help you create a revocable living trust in any of the following places:
|Washington State||New Jersey||Louisiana|