There are three parties in a family trust: a grantor, a trustee and the beneficiaries.

The grantor makes the trust and transfers their assets into it. The trustee manages the assets in the trust on behalf of the beneficiaries, who receive some type of financial benefit from the trust.

A family trust lists your family members as the beneficiaries, and can also include spouses.

Family trusts are a type of living trust that takes effect during your lifetime, and can be revocable or irrevocable.

Revocable trusts can be altered or terminated at any time, while irrevocable trusts are permanent.

With a revocable family trust, you can act as your own trustee, naming successor trustees to take over if you become incapacitated or pass away. With an irrevocable trust, you must name someone else to act as the trustee.

A family trust could help ensure your assets are managed according to your wishes on behalf of your beneficiaries.

The trust specifies when beneficiaries can access their share of your assets and under what terms.

Family trusts can be useful in estate planning if you want to avoid probate for your family. Probate is the legal process of distributing the assets in an estate, due to the decedent dying intestate (without a will) or having an estate larger than their respective state government’s limit.

Anything that happens in probate is part of the public record and it can be a time-consuming and expensive process.

You could use an irrevocable family trust to insulate assets from creditors.

Most importantly, a family trust could potentially help minimize estate taxes once the trust grantor passes away.

The first step in creating a family trust is typically talking with an estate planning attorney or financial advisor to help find the trust option that could best suit your needs.

Next, you’ll designate a trustee – yourself or you could name someone else. Then, decide which family members you want to benefit from the trust and determine exactly what they’ll get.

From there, you’d create the trust agreement. This is when it could be better to work with a professional, especially if you have substantial assets.

Next, you’ll fund the trust by transferring assets to the ownership of the trustee. So if you want to place a home inside a family trust, you’d transfer the deed to the trustee.

Be sure to check the local legal requirements for a family trust. Otherwise, your heirs might run into issues when it’s time to access trust assets. This is another area where a financial advisor's advice could potentially be beneficial.

A family trust is something you might consider using if you want to keep your wealth in the family.

Ultimately, choosing whether to utilize a family trust comes down to what's best for your individual financial situation and estate planning needs.

Consulting a fiduciary financial advisor could help you determine a plan that factors your assets and taxes into your overall retirement and estate-planning goals. Fiduciaries are obligated by law to act in your best interest and any potential conflicts of interest must be disclosed.

Yet knowing how to find a vetted fiduciary advisor is, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. "Fiduciary financial advisors near me,” "best fiduciary financial advisor,” and "financial investment advisors near me” are searched hundreds of times per day.

Finding a fiduciary shouldn't be that hard. Thankfully, now it isn't.

Our free matching quiz helps Americans get matched with up to three fiduciary advisors who serve their area so they can compare and decide which advisor to work with. All advisors on the matching platform have been vetted through our proprietary due diligence process.

The quiz takes just a few minutes, and in many cases, you can be connected instantly with an advisor to have an introductory call