Family Trusts

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 an 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 on to children without ever subjecting those assets to federal estate taxes.

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.