For most estate plans a trust is a great way to go. There are numerous benefits including avoiding probate and protecting your privacy. For most, we recommend a living trust at Collins Law, but family trusts are also an option. Learn the difference between living trusts and family trusts right here from your trusted estate planning experts at Collins Law serving Milwaukee, WI.
Is a Family Trust a Type of Living Trust?
In general, there are two types of trusts, a testamentary trust, and a living trust. The latter you create while you are still alive and is an important part of any good estate plan. A family trust can actually be either type, but what we will cover here is a family trust that is created while you are still alive.
This means that there is a lot of overlap in how they work and how you can best use them. We will go through some of the key differences so that you can understand the circumstances under which it is best to use a family trust over a normal living trust.
Read More: Difference Between a Revocable and an Irrevocable Trust
Who Can Receive the Estate in Living and Family Trusts?
This is going to be the biggest difference between the two types of trusts. The way a family trust is generally set-up is that only family can inherent. In a general living trust, anyone that you wish can inherent, but a family trust is set up to assist the family going forward.
Often family trusts will have designated milestones for payout including things like graduation, marriage, childbirth age milestones, and for the most part, whatever else you may want. If you have loved ones that need special care, a family trust can also fund that care.
Is a Family Trust a Credit Shelter Trust?
Trusts can go by a lot of names. Another type of trust is a credit shelter trust which may also be called a B trust or a bypass trust. Many family trusts are set up for these purposes. Such a trust is designed to reduce or even eliminat stat and/or federal estate taxes when a spouse dies. Such a trust can be set up by a skilled estate law attorney such as those at Collins Law.
Without an Estate Plan Will Your Assets go to Your Spouse in Wisconsin?
Estate Planning Attorney Near Milwaukee, WI
Collins Law has the estate planning experts that you want to work for you when it comes time to set up a living trust or a family trust. We can build your estate plan around your needs to ensure that your wishes are properly followed upon your death. Don’t forget to reach out to us for a free consultation today!
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