How Do Family Trusts Work? (And Should You Work with a Family Trust Law Firm in Hamilton to Arrange One?)

What is a trust, how does it differ from a will and what are the benefits of using one? Among individuals mulling over the possibility of setting up trusts for their families, these three questions are quite common. Another frequent one is ‘Would a family trust be the right choice for my family and me?’ As family trust lawyers in Hamilton, we are happy to answer these questions for you at Atticus Legal. We have more than 25 years of experience in the area of trusts and wills, so we can help you to understand the differences between various types of estate planning.

What Is a Family Trust and Is It the Right Choice for Me?

When you come to Atticus Legal, our trust lawyers in Hamilton will converse with you to understand your situation and provide personalised advice for whether or not a family trust is the right choice for you. When we can look at your finances, estate and heirs, we can offer better advice as to which course of action you should take. However, you might be able to answer your own questions about wills and family trusts by reading our basic tutorial below.

A will is a document that lays out a person’s wishes for how their estate will be handled after that person’s death. Among other things, a will can outline who will receive certain assets that belonged to the deceased. Up until death, though, the creator of the will remains the owner of such property. To start the process of distributing the assets to the heirs named in the will; the will first needs to go through probate. Probate is a court process where the will is reviewed and ruled valid or invalid.

A trust has a similar outcome: distributing a person’s assets to their family, friends and loved ones after death. However, a trust also functions differently than a will in that the trust itself assumes ownership of the grantor’s assets. With a will, the grantor retains possession of his or her assets until death. With a trust, the trust itself owns the assets—though the grantor still holds complete control of those assets until he or she passes away. Similar to a will, the grantor of a trust can add assets to the trust over time or revise the planned distribution of assets.

There are several benefits of working with a trust law firm in Hamilton to arrange a family trust. Trusts allow your family to avoid the probate process—easily the biggest disadvantage of wills. Trusts also limit estate taxes, protect your assets when you are living and allow you to hold assets for loved ones after you are gone. In other words, if you are leaving an inheritance to a child or grandchild, the trust can dictate a certain age for those assets to be disbursed.

Meet with a Family Trust Lawyer in Hamilton to Find out More

The information provided above should make it easier for you to understand how family trusts work. However, if you still aren’t sure whether a trust or a will is better for you and your family, you should consult an experienced trust lawyer in Hamilton. Call Atticus Legal on 07 839 4558 to schedule your initial consultation.