30 West Patrick Street Ste. 100 Frederick, Maryland 21701

Family Trust

large family gathered together on the beach

What is a Family Trust?

A family trust, also known as a “B” trust, “credit shelter” trust, or a “bypass” trust, provides a husband and wife the opportunity to pass money or assets on to children in the most tax-efficient way. By placing assets into a family trust upon the death of the first spouse, assets and income are still available to the surviving spouse, but the exemption amount of the deceased spouse (currently $3.5 million) can be passed onto children without ever subjecting those assets to federal estate taxes.

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grandfather and grandchildren sailing together on a sailboat

Who should use a family trust?

A family trust is one of the most commonly used, most versatile, and most effective estate planning tools. For the uninitiated, it may be a source of much unnecessary confusion and concern; however, The Family Heritage Trust Company will serve as a guide to help you maximize the benefits of establishing a family trust.