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What is a family trust in Georgia and how does it work?
In this article, you’ll learn about:
Let’s dig in.
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A family trust is also known as a family living trust.
It is a legal entity created to manage and distribute assets for the benefit of family members.
A trust involves transferring the legal title of assets to the trust.
Which is then managed by a trustee for the benefit of the trust’s beneficiaries.
Here are the key components of a family trust:
Read More: Who Needs A Trust Instead Of A Will?
Family trusts have many uses in managing money and planning estates.
Here are some reasons our clients in Georgia set up family trusts:
Here are the different types of trusts in Georgia you can create:
Read More: What Happens To An Irrevocable Trust When The Grantor Dies?
Family trusts offer a variety of benefits and can be a valuable tool in financial planning.
Here are some of the key benefits of a family trust:
Read More: How Much Does A Living Trust Cost?
A family trust is a legal tool to manage and safeguard assets for relatives.
The person making the trust, called the settlor, drafts a trust agreement.
This trust document sets the rules, like how assets are managed and shared.
Next, the settlor moves assets into the trust, known as “funding the trust.”
You can fund the trust with real estate, money, stocks, and more.
Usually, asset titles must be changed to the trust’s name with a quit claim deed.
The trustee is the person or trust lawyer (we offer this) that handles the assets.
They invest money, manage properties, and decide how to share assets among the beneficiaries.
The trustee must prioritize the beneficiaries’ interests, known as fiduciary duty.
Beneficiaries are the people chosen to get benefits from the trust.
They can receive money regularly, get lump sums, or use properties.
You can choose between a revocable and irrevocable trust.
In a revocable trust, the settlor can change rules or end the trust anytime.
An irrevocable trust cannot get changed as it’s approved by the beneficiaries.
Read More: Does A Revocable Trust Become Irrevocable Upon Death
A revocable trust is a legal tool that lets you put assets into a trust while staying in control.
You, as the creator, can change or cancel the trust any time you want.
A trustee, often yourself, manages the trust.
When you pass away, the assets go to the people you picked, called beneficiaries.
This process avoids probate, which is often lengthy and expensive.
If you become unable to manage your affairs, the trust can also help ensure proper handling of your assets.
An irrevocable trust in Georgia is a legal tool where someone places assets into a trust for beneficiaries.
The person creating the trust is called the grantor.
The grantor picks a trustee to manage the trust.
Once the grantor transfers assets into the trust in Georgia, they can’t take them back.
This is because the trust is irrevocable.
The irrevocable trust owns the assets, not the grantor.
The trustee must follow the rules the grantor set when creating the trust.
Beneficiaries receive assets from the trust according to these rules.
People use irrevocable trusts for various reasons, like:
Read More: Who Needs A Trust Instead Of A Will?
Setting up a family trust requires careful consideration of your financial goals and family needs.
It’s also essential to comply with the requirements of Georgia’s trust laws.
Here’s a step-by-step guide on how to set up a family trust:
Read More: Do I Need A Trust To Avoid Probate
Family trust laws are the legal regulations that govern how family trusts are created, managed, and dissolved.
Here are some of the common components of family trust laws:
Read More: Does A Revocable Trust Become Irrevocable Upon Death?
Here are questions our clients ask us about family trusts in Georgia.
ome disadvantages of a family trust are:
To set up a family trust in Georgia, follow these steps:
Pros of a family trust:
Cons of a family trust:
Read More: How Much Does A Living Trust Cost?
In a family trust, the trust itself owns the assets.
When someone creates a trust, they transfer ownership of their assets to it.
This person is called the trustor.
A trustee manages the trust.
The trustor can also be the trustee, managing their own assets.
When the trustor dies or can’t manage the trust, a successor trustee takes over.
The trust document sets rules for how assets are used.
Beneficiaries are the people who benefit from the trust.
They can receive income or assets from it.
In summary, the trust owns the assets, the trustee manages them, and the beneficiaries receive benefits from them.
Read More: How Much Does An Estate Have To Be Worth To Go To Probate?
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