Family trust lawyers help in setting up a trust on a family’s behalf. A trust helps families in the transfer of their property and assets. It can also help people avoid having to go through the probate process. The Supreme Court uses the probate process to validate a Will.
A trust is also a legal relationship where family trust lawyers hold the assets on a beneficiaries’ behalf. This also helps protect family assets and enables family members to receive income trusts and trust capital. An income trust is an investment trust that carries income-producing assets.
Income trusts can also be structured as personal investments or commercial trusts. Meanwhile, trust capital is the established validity of a resource (or capital) gained or spent through various activities. This article will discuss family trust and family trust lawyers.
Family Trusts Vs Wills
Family trusts and Wills enable people with the option to hold and distribute assets to beneficiaries. Beneficiaries are the people that receive a deceased’s assets and properties. Also, both family trusts and Wills require a person to manage and distribute the properties and assets.
The family trust uses a trustee, while a Will uses an executor. Both of these people must act in the beneficiaries’ best interests. There are, however, differences between family trusts and Wills. Family trusts specifically control assets during a lifetime.
However, this does not mean that those assets and properties are owned legally. On the other hand, Wills are documents that control asset and property distribution after a Will-maker’s death. Family trust assets do not form part of an estate, therefore it’s not possible to pass trust assets to a Will. Furthermore, there are two more distinctions between a family trust and a Will.
1. Usage
Family trusts usually make annual distributions during a person’s lifetime. Meanwhile, Wills hold properties and assets until the Will-maker dies. Beneficiaries will only then receive those assets and properties. Additionally, family trusts treat asset titles in the name of the trustee and on behalf of the trust. In comparison, the deceased’s asset titles remain in his/her Will.
2. Distributions
Family trust distributions are different from Will distributions. Family trust distributions are done on an ongoing basis, annually. On the other hand, Will distributions only take effect after a Will-maker’s death. The executor will then obtain probate to allow asset and property distribution.
Family Trust Lawyers: Documents Needed To Form A Family Trust
Trust deed
Trust deeds are documents that set out the terms and conditions of how the trust will operate and terminate. The trustee holding the trust fund will administer the trust in accordance with the trust’s terms and conditions. Family trusts usually last up to a maximum of 80 years, unless there was an early asset and property distribution. Family trusts can also last as long as it is not terminated.
Minutes
Companies that are appointed as trustees will require its director to hold a meeting about signing a trust deed. The trust’s settlor then signs the original trust in the directors’ presence. Settlors are the party that creates a trust. The minutes serve as documentary evidence of what transpired in the meeting.
Memorandum of wishes
People who create a family trust or people who transfer assets to a family trust can prepare this document. These people guide the trustee by explaining the person’s best intentions for income and trust capital distribution. Most memorandum of wishes are prepared at the same time as a trust deed.
However, people can prepare a memorandum of wishes at a later date while updating it from time to time
Appointing a new trustee
There may be instances where an existing trustee resigns or retires. It’s also possible for an appointor (the ultimate controller of the trust) to replace the existing trustee. If these happen, the trust’s deed should show when to appoint a new trustee.
A newly appointed trustee will have to sign the trust’s deed. On the other hand, companies will have to hold another meeting if they want to resign as a trustee. The meeting will serve as evidence of the appointment of a new trustee. Appointing a new trustee will require the assistance of family trust lawyers.
The Benefits Of Hiring Family Trust Lawyers
A lot of people opt to hire family trust lawyers when they want to make a family trust. This is because family trust lawyers ensure proper asset and property distribution. Moreover, they can avoid any legal implications that may affect a family trust. Here are reasons why it’s beneficial to hire family trust lawyers:
The trust’s terms and conditions
Trust will certainly have terms and conditions that can control assets and property administrations. For instance, people can ask assistance from family trust lawyers to include requirements like receiving assets at a certain age.
Estate taxes
Estates that are larger than the federal tax estate exemption will result in estate taxes. Family trust lawyers can aid in what step to take and even cut down estate taxes.
What to put in a Will
People might get confused about whether they should use a Will or a trust. Hence, it’s best to seek the advice of family trust lawyers when deciding which one to use.
Skipping generations
Skipping generations is a parent not giving assets to their children and instead giving them to their grandchildren. Family trust lawyers can transfer these assets while avoiding disputes from the skipped generation.
Help in transferring assets
Generally, most people don’t have an idea how to transfer assets. Family trust lawyers can explain the correct way of transferring assets and how to implement them.
Hire A Family Trust Lawyer With JB Solicitors
Most people will have to make difficult decisions when drafting up a trust for their families. Furthermore, this may result in family members disputing a trust and unnecessary family court proceedings. Our family trust lawyers at JB Solicitors can aid in drafting a legally binding trust for our clients.
This can ensure that estate taxes are taken care of properly. We can also draft Wills if clients wish to list down information regarding the distribution of assets and properties after they pass away. Working with us can ensure the proper asset and property distribution, regardless of whether people choose to draft trusts or Wills.
Contact JB Solicitors today.
