When we think of trusts, we usually assume that it is only for wealthy families. However, trusts are available to anyone who wishes to care for their family long after they are gone.

What is a trust?

A trust involves three parties. The trustor, the trustee, and the beneficiaries. The trustor, the owner of the property, transfers its title to the trustors. The trustor then holds the property until the time comes when they need to give it to the beneficiary. Unlike a will, a trust will take effect as soon as it is created and can even distribute property prior to your death if desired for tax or family purposes.

Why you should set up a family trust?

A family trust enables your estate to be efficiently distributed among your family without the need to go to court. Nowadays, the estate of the decedent is given to its beneficiaries upon the conclusion of probate proceedings. Probate is a court proceeding where the judge determines to whom your assets should be distributed. They can take a while and can be burdensome to your loved ones.

Furthermore, a family trust can be easily availed in Georgia. It can easily be managed and maintained to adhere to your current wishes and assets. They can also limit your tax liabilities, decreasing the amount of estate tax that your beneficiaries will eventually pay.

How do you set up a family trust?

It can be very easy to set up a family trust. It can be summarized in three steps:

  1. Draft a trust document.

To draft a family trust, a list of assets and beneficiaries is needed. Furthermore, the terms of how assets are to be distributed must be detailed to draft a proper trust agreement.

  1. Set up the family trust.

 Contact an estate planning attorney to help set up and arrange the trust. You’ll be able to work closely with your attorney to formulate a plan for how your assets and end-of-life wishes will be carried out. They’ll also be able to advise on the right type of trust for your individual and taxable circumstances.

  1. Transfer assets to the family trust.

Finally, after legally setting up the trust, you can now move your assets to your new family trust. this entails the entitlement of assets to make them trust-owned. This can be done simply by contacting the agencies where you have assets and get to know their process on how to transfer your properties to your family trust.

If you are interested in setting up a family trust, contact our team at Smith Barid and we’ll help you get started with our easy and affordable fixed-price estate planning process.