How to start a family trust

How to start a family trust

How to start a family trust


What is a Family Trust?
A family trust is a trust established specifically for the benefit of members of a particular family. The purpose of creating a family trust is to protect and manage family assets for current and / or future generations.

Trust Property

In order to appreciate the many benefits that family trusts can provide, it is important to note that the trustees become the legal owners of the trust property once it is settled onto the trust by the settlor(s) for the benefit of the beneficiaries.

7 Reasons To Set Up A Family Trust

There are many reasons to set up a family trust, including:

1. Creditor Protection

Property transferred to the trust is no longer owned by the settlor (or the beneficiaries) and therefore should not be subject to claims from future creditors, provided certain conditions are met at the time of settlement. With creditor protection in place, the settlor may decide to undertake a higher risk occupation or venture with no risk over the trust assets.

2. Protecting Against Relationship Property Claims

Under certain circumstances, if you gift assets to your children during your lifetime, these assets may become available to their partners under relationship property laws should their relationship end. By placing these assets in a trust instead of directly in the name of your children, your children can continue to receive the benefit of those assets without the assets forming part of their personal property and therefore not subject to claims from partners.

Furthermore, if you are married or in a de facto or civil union relationship, it is likely that part of your assets will be relationship property. Should you separate from your partner, the relationship property must be divided between the two of you. By transferring family property to a family trust, the assets become assets of the trust rather than your personal property and may therefore be protected from relationship property claims, subject to applicable relationship laws.

3. Protecting Family with Illness or Special Needs

A family trust may be used to provide for children or other family members who require medical care or have special needs, or who are unable to manage their own affairs through either age or infirmity. Provisions can be made in the trust to protect against other family members who may intend to assume control of the family assets for themselves, following the death of the settlor.

4. Protecting Against Spendthrift Beneficiaries

Trusts can provide for long-term protection of family assets where you have concerns about how certain family members manage their own financial affairs. The income or capital needs of family members can be provided for through the trust as their needs arise rather than handing over your assets to your children who may dispose of them in a reckless manner thus leaving them in poor financial standing in the long term.

5. Flexibility to React to Change in Law

Modern trust deeds usually include provisions which allow variation of the trusts in order to deal with changes in law.

6. Succession Planning for the Family Business

For more details on this area please see our previous post Succession Planning for Family Businesses.

7. Estate Planning

As mentioned above, subject to applicable bankruptcy and family law provisions, assets settled on a trust no longer form part of the settlor’s estate upon his or her death.

Planning Your Trust

When developing your wealth planning objectives, you must first decide whether a trust is suitable vehicle to meet your objectives. Careful consideration should then be given to how the trust is established and how it will be managed going forward. Failure to apply the appropriate diligence to the specifics of the trust and to obtain jurisdiction-specific professional advice may result in the purpose of the trust being defeated.

Trust Funds 101

If you’ve heard of trust funds but don’t know what they are or how they work, you’re not alone. Many people know just one key fact about trust funds: they’re set up by the wealthy as a way to protect passing on significant sums of money to family, friends, or entities (charities, for example) after they pass away.

However, only part of the conventional wisdom is true. Trust funds are designed to allow a person’s money to continue to be used in specific ways after they pass away, and to avoid their estate going through probate court (a time-consuming and expensive legal process). But trusts aren’t only useful for ultra-high-net-worth individuals, the middle-class can use trust funds as well, where setting one up isn’t out of financial reach.

How To Set Up A Trust Fund If You’re Not Rich

Key Takeaways

  • Trust funds are designed to allow a person’s money to continue to be useful well after they pass away. You can place cash, stock, real estate, or other valuable assets in your trust.
  • A traditional irrevocable trust will likely cost a minimum of a few thousand dollars and could cost much more.

The Mechanics of Trust Funds

To understand how a trust fund operates, let’s look at an example. You’ve worked hard all of your life and have built up a comfortable savings cushion. You know that sometime in the future you’re going to pass away, and you want your hard-earned savings to go to the people you love or the charities or causes that you believe in.

Now, what about loved ones who are not as financially savvy as you? You could be concerned about leaving them a lump-sum gift because they might use it irresponsibly.

Furthermore, you may even like to see your money carry over for generations to come. If this is how you feel, then you should set up a living irrevocable trust fund. This type of trust can be set up to begin dispersing funds when certain conditions are met. There is no stipulation that you cannot be alive when that happens.

You can place cash, stock, real estate, or other valuable assets in your trust. You meet with an attorney and decide on the beneficiaries and set stipulations. Maybe you say that the beneficiaries receive a monthly payment, can only use the funds for education expenses, expenses due to an injury or disability, or the purchase of a home. It’s your money, so you get to decide.

Eligibility for Need-Based Financial Aid

Although the trust is irrevocable, the money is not the property of the person receiving it.   Because of this, a child applying for financial aid would not have to claim these funds as assets. As a result, there will be no impact on eligibility for need-based financial aid. The trustor can also establish trusts for future generations of children, making the trust a lasting legacy for an indefinite number of generations.

Because it’s irrevocable, you don’t have the option of later dissolving the trust fund. Once you place assets in the trust, they are no longer yours. They are under the care of a trustee. A trustee is a bank, attorney, or other entity set up for this purpose.  

Since the assets are no longer yours, you don’t have to pay income tax on any money made from the assets. Also, with proper planning, the assets can be exempt from estate and gift taxes.

These tax exemptions are a primary reason that some people set up an irrevocable trust. If you, the trustor (the person establishing the trust) is in a higher income tax bracket, setting up the irrevocable trust allows you to remove these assets from your net worth and move into a lower tax bracket.

Trust Fund Drawback: Fees

There are some downsides to setting up a trust. The biggest downside is attorney fees. Think of a trust as a human in the eyes of tax law. This new person has to pay taxes and the mechanics of the trust have to be written with an extraordinary amount of detail. To make it as tax-efficient as possible, it has to be crafted by somebody who has a lot of specialized legal and financial knowledge.

Trust attorneys are expensive. A traditional irrevocable trust will likely cost a minimum of a few thousand dollars and could cost much more.

Other Options

If you don’t want to set up a trust fund, there are other options, but none of these leave you, the trustor, with as much control over your assets as a trust.

Wills

Writing a will costs much less money, but your property is subject to more taxes and the terms can easily be contested in a process called probate. Additionally, you won’t have as much control over how your assets are used. If the will is contested, attorney fees could eat up a large portion of the money that you wanted to see used in a way that would benefit others.

UGMA/UTMA Custodial Accounts

Similar to a 529 college-savings plan, these types of accounts are designed to place money in custodial accounts that allow a person to use the funds for education-related expenses. You could use an account like this to gift a certain amount up to the maximum gift tax or fund maximum to reduce your tax liability while setting aside funds that can only be used for education-related expenses.    

The disadvantages to UGMA/UTMA Custodial Accounts and 529 plans is that the beneficiary may be attending college, but using these funds for other expenses outside of your control. Furthermore, the amount of money in the minor’s custodial account is considered an asset, and that may make them ineligible to receive need-based financial aid.

The Bottom Line

For those who don’t have a high net-worth but wish to leave money to children or grandchildren and control how that money is used, a trust may be right for you; it’s not just available to high-net-worth individuals, and it offers a way for trustors to protect their assets long after they pass on.

How to Make a Family Trust

Creating a family trust is an effective way of managing family assets. There are two common types of family trusts: revocable and irrevocable living trusts. When someone sets up a revocable living trust, they transfer assets into the trust for the purpose of benefiting those to whom the assets ultimately pass, called the beneficiaries. After the creator of a revocable living trust passes away, the assets may remain in the trust for a period of time, such as until the beneficiaries reach adulthood or some other age as designated in the trust agreement, or the assets may be distributed directly to the beneficiaries. The creator can retain complete control over the assets of the trust while they are alive and can revoke the trust or amend its terms and conditions at any time.

How to start a family trust

Assets placed in an irrevocable living trust, on the other hand, may not be removed. Further, the terms and conditions of the trust are difficult to modify after its creation. Families may consider an irrevocable living trust for an adult child with mental or physical disabilities, for example. However, families should know ahead of time that once an irrevocable living trust is funded, it is typically permanent.

Here are the important steps to follow to create either kind of family trust.

1. Decide what kind of trust you want.

For most families, a revocable living trust suits their particular needs. It is much less common to create an irrevocable living trust.

2. Decide which assets to put into the trust.

Many people choose to place all their assets in the family trust. This approach is fine for most people, however, it is not the best choice for all families and all situations. Consider, for example, a couple on their second marriage. They may wish to each have a revocable living trust funded with assets they possessed prior to the marriage and that have been identified as premarital assets in a prenuptial agreement. They may wish to have a second revocable living trust funded with their joint assets.

3. Identify the trustee and beneficiaries.

The trustee is the person in charge of managing the assets in the trust. If you are setting up a revocable living trust, you may name yourself as the trustee. This allows you to manage the assets, including making decisions about selling them, while you are still alive. You also need to name a successor trustee to take over managing the assets after your passing.

Next, consider the individuals or organizations that you would like to inherit your assets when you pass away. If you are setting up an irrevocable living trust to provide funds for the care of your disabled child after you are gone, identify that child as the beneficiary. If you are planning for the transition of assets to your adult children when you are no longer around, identify them as the beneficiaries.

4. Define the parameters.

Perhaps you wish to have your daughter inherit twice as much as your son, or perhaps you want one child to have the beach house and the other to have the family home. Maybe you want to place restrictions on the trust, such as that the money isn’t distributed until the beneficiary reaches the age of 50. Whatever conditions you wish to impose, decide these now.

5. Select a name for your trust.

Most people set up their family trust using the family name, such as the Funk Family Trust. This makes transferring assets easier.

6. Create the trust document.

You may wish to consult with an estate planning attorney or an online service provider when you create your trust agreement. In either event, you should know that merely intending to place your assets into a trust is not considered legally sufficient. The paperwork must be drawn up, signed, and witnessed consistent with the laws of the state in which you create the trust.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.

Learn about the nature of a trust, and the basics of how one is set up.

by Edward A. Haman, Esq.
updated July 21, 2021 · 4 min read

A living trust can be a vital part of your estate planning process, and they’re easy to set up.

How to start a family trust

What a Trust Is

A trust is a way of holding and managing property, whereby the person setting up the trust (called the grantor, settlor, or trustor) transfers property to a trustee, who manages the property for the benefit of others (called beneficiaries).

A trust is used as part of a comprehensive estate plan, along with other documents such as a will, power of attorney, and healthcare power of attorney.

To better understand trusts, it helps to know a few basic terms:

  • Living trust. A trust that is set up while the grantor is alive (also known as an inter vivos trust).
  • Testamentary trust. A trust that is set up by the grantor’s last will and testament.
  • Revocable trust. A living trust that the grantor may change or cancel at any time.
  • Irrevocable trust. A living trust that the grantor may not change or cancel.
  • Trust agreement. The legal document that sets up a trust. It is sometimes called a Declaration of Trust; however, the title on the document may simply read “The Jones Family Trust,” or something similar. It sets forth the names of the grantor, the trustee, and the beneficiaries. It also states how the trustee should distribute the income from trust assets while the grantor is alive, and how the assets or income should be distributed to the beneficiaries after the grantor’s death.

Why to Set Up a Trust

A trust is set up to achieve certain benefits that cannot be achieved with a will. These can include:

  • Avoiding probate
  • Avoiding or delaying taxes
  • Protecting your assets from creditors of both you and your beneficiaries
  • Maintaining privacy regarding your assets
  • Exercising greater control over your assets than might be achieved with an ordinary will
  • Allowing you to qualify for certain benefits, such as Medicaid for long-term care
  • Providing financial support for a person with a disability, while allowing the person to receive government disability benefits

If you are looking to achieve one or more of these goals, you should consider setting up a trust.

Do You Need a Will or a Living Trust?

A will and a living trust do not serve exactly the same function. Depending upon your situation, you may only need a will. But if you decide that you need a living trust, you will also need a will. It’s important to know which choice is better for you.

How to Set Up a Trust

Setting up a trust is a two-step process:

1. Creating the Trust Agreement

The grantor creates a trust agreement, which is a legal document that designates the grantor, the trustee, and the beneficiaries, and outlines how the trust assets are to be managed and distributed. Part of this step is deciding who you want to name as beneficiaries, how you want the trust income and assets distributed to them, and who you want to name as trustee (or trustees).

2. Funding the Trust

The second step, called funding the trust, is for the grantor to transfer assets to the trust. A trust agreement is worthless unless the trust is funded. How this is done depends upon the nature of the property:

  • Real estate. To transfer real estate, the grantor executes a deed that transfers the title to the property to the trust.
  • Personal property with a title document. Some assets, such motor vehicles, boats, RVs, airplanes, and mobile homes (also known as modular or manufactured homes) have some type of title document, which can be transferred to the trust. This can also be done with stocks and bonds.
  • Other personal property. All other property without a title document can be transferred by simply writing a description of the property on a piece of paper (such as “all of my household goods,” or “my coin collection”), and making a note that it is being transferred to the trust.

How Long Does It Takes to Set Up a Trust?

In general, it is possible to set up a functioning trust in a few days to a couple of weeks. If a lawyer creates your trust, the time will vary depending upon how quickly you can get an appointment, how quickly you can get the required information submitted, and how long it takes the lawyer to create the trust agreement and take any action needed to fund the trust. If you create your own trust, the time will also vary according to how quickly you can become educated about trusts.

How Much It Costs to Set Up a Trust?

If a lawyer sets up your trust, it will likely cost from $1,000 to $7,000, depending upon the complexity of your financial situation. For example, some situations might require a revocable trust for some assets, and an irrevocable trust for other assets. A comprehensive estate plan (which may include a will, power of attorney, living will, healthcare power of attorney, and changing how some assets are owned) will cost more than a single trust document.

While you can make a trust by yourself—using self-help books or online guides—often, creating a trust document is confusing and complex. Having the right support, either through an online service or attorney review of your trust, can give you the confidence you need to know you’re setting it up correctly.

A family trust is an essential tool of estate planning. One of the most common reasons for starting a family trust is to spare your family from having to go through probate to inherit your estate. Probate can be a long, drawn-out, expensive, and even contentious process. Another common reason for creating a family trust is to reduce your family’s tax burden when inheriting your assets. The two most common types of family trust are revocable trusts and irrevocable trusts. A revocable trust is a family trust whose terms can be changed and can even be dissolved at the discretion of the creator, or “Settlor,” of the trust. However, an irrevocable trust is a trust whose terms are irreversible and can never be dissolved once the trust is created. These are the main differences between revocable and irrevocable trusts. Now we shall discuss how to start a family trust.

Decide Who Your Trustee and Beneficiaries Will Be

It is within your rights to nominate yourself as the trustee of your trust. As the trustee is tasked with managing a trust, you may not feel comfortable handing over the management of your assets to a third party while you are still alive. If so, you will have to nominate a successor trustee who will manage the estate if you become incapacitated or pass away.

You will also need to decide who your beneficiaries will be. Your beneficiaries need not be family members. You are free to nominate whoever you like to be your beneficiary. You should also consider what will happen if any of your beneficiaries passes away. For instance, if you select your children as beneficiaries and one of them dies, their share can be distributed to their surviving siblings.

Decide How Your Trust Will Be Funded

Funding your trust means that you transfer the ownership of some or all of your assets to your trust. You will have to do an inventory of all your assets. This will give you a picture of what you are worth and what you can leave behind. Until you have transferred ownership of your assets to your trust, your trust will be unfunded, and your family will have to go through probate.

Draft Your Trust Document

The first thing you have to do is define what the terms of your trust will be. The terms will state what assets you are distributing, how they should be distributed, who your trustee and beneficiaries are, and any other important terms for you. You may choose to place restrictions on the distribution of assets. For instance, if you are leaving something to a minor, you can restrict their access or management of their portion of the estate until they are old enough to manage their share themselves. You have to think through various scenarios to ensure that there are a few problems as possible when it comes time to distribute your assets.

The trust document must be signed and witnessed before it can come into effect. Otherwise, it will not be legally binding.

Get more information and start your family trust today!

Jacob Maslow

The senior editor of Legal Scoops, Jacob Maslow, has founded several online newspapers including Daily Forex Report and Conservative Free Press

Outgoing leaders must clear a path — with candor and communication — for the next leader.

I have written much about the advice I give family business owners as they seek to transition their business to the next generation. Often, the focus is on the process surrounding the business founder’s decision on picking their next successor and the response of their family to these choices.

But transitions aren’t successful the moment the leader concludes, closes their laptop and hits the beach. What comes after ultimately decides the fate of the business. The new leader — be it a family member or an outsider — may have been given the blessing of their predecessor, but to truly lead, they must first earn the trust of the team. Legacy employees — many of whom may have known the new family leader since he or she was a child — are often reluctant to have blind faith and trust in them. The same goes for newer staff members who may have little to no connection to the new leader. Trust is earned, not given.

But how does a new leader earn the trust of their employees? A study at Northwestern’s Kellogg School of Management called “The Trust Project” identified three characteristics needed to gain trust: competence, honesty and benevolence. In short, your team wants to know you have the skills, integrity and empathy to do the job, make decisions that are best for the company and support your team.

In my experience as a family business consultant, making assumptions a “known” individual will be implicitly trusted is erroneous. Being a known quantity, in fact, can work against a new leader. When the team has been around this person for several years, they have seen their setbacks, failures and warts. While it may be hard to trust an outsider, an insider can’t be complacent. They must be intentional in demonstrating their abilities and leadership presence, proving to the team that despite their failings, they are the right person for the job.

Laying the groundwork for trust, however, starts long before the transition. So, let’s rewind a bit.

Before a new leader can earn trust on their own, the right environment must be set by the current leader before his or her departure. Naming a successor is only the first step. Paving the way for them to succeed is the most important job of the outgoing leader. The process should start early — months at least, but years in a perfect world (especially in the case of a family member being groomed for leadership). Of course, gaining trust will mostly be the responsibility of that new leader, but paving the path for them to succeed is essential, and boils down to four major concepts:

Communication

Once a leader has chosen a successor, openly communicating these intentions to the team is key. Don’t underestimate the anxiety created in a company when there are numerous closed-door meetings, or when the owner is around less frequently but no one in a leadership role is being transparent as to what decisions about the future are being made. If employees think you are hiding something (and they can sense it, trust me), they will become suspicious of the new leader. After all, if you trust this person to take over the business, what’s to hide? You must find the “right” time to tell the team. Too early, and some might jump ship. Too late, and it will seem like you’re pulling the bait and switch. The situation for each business is different, but make sure you make the announcement with enough time for the team to get accustomed to the change before it happens.

Empowerment

Prior to the transition, it is imperative that the incoming leader be given leadership responsibilities. This will give them a chance to demonstrate their worth, and a buffer zone to allow for learning and development. Additionally, it will allow the team to get used to the new leader making decisions, rather than an abrupt change.

Respect

The team ostensibly trusts you, the current leader, and will look to you for acceptance of the new leader. Treating the incoming leader with respect will go a long way to ensure the team will respect and trust them as well. Lead by example.

Honesty

The chances that the incoming leader is already perfectly set up to succeed are slim to none. As the predecessor, you must give them honest feedback so they can learn and grow and be prepared when the time comes. Many of my clients have a difficult time with this since the new leader is often their child. But without this respectful but “tough love,” you are essentially setting up your child for failure, something no parent, and no business leader wants to do.

Leaders aren’t made, they are grown. As the outgoing leader of a company, you must do everything in your power to foster that growth and clear a path for success.

Outgoing leaders must clear a path — with candor and communication — for the next leader.

I have written much about the advice I give family business owners as they seek to transition their business to the next generation. Often, the focus is on the process surrounding the business founder’s decision on picking their next successor and the response of their family to these choices.

But transitions aren’t successful the moment the leader concludes, closes their laptop and hits the beach. What comes after ultimately decides the fate of the business. The new leader — be it a family member or an outsider — may have been given the blessing of their predecessor, but to truly lead, they must first earn the trust of the team. Legacy employees — many of whom may have known the new family leader since he or she was a child — are often reluctant to have blind faith and trust in them. The same goes for newer staff members who may have little to no connection to the new leader. Trust is earned, not given.

But how does a new leader earn the trust of their employees? A study at Northwestern’s Kellogg School of Management called “The Trust Project” identified three characteristics needed to gain trust: competence, honesty and benevolence. In short, your team wants to know you have the skills, integrity and empathy to do the job, make decisions that are best for the company and support your team.

In my experience as a family business consultant, making assumptions a “known” individual will be implicitly trusted is erroneous. Being a known quantity, in fact, can work against a new leader. When the team has been around this person for several years, they have seen their setbacks, failures and warts. While it may be hard to trust an outsider, an insider can’t be complacent. They must be intentional in demonstrating their abilities and leadership presence, proving to the team that despite their failings, they are the right person for the job.

Laying the groundwork for trust, however, starts long before the transition. So, let’s rewind a bit.

Before a new leader can earn trust on their own, the right environment must be set by the current leader before his or her departure. Naming a successor is only the first step. Paving the way for them to succeed is the most important job of the outgoing leader. The process should start early — months at least, but years in a perfect world (especially in the case of a family member being groomed for leadership). Of course, gaining trust will mostly be the responsibility of that new leader, but paving the path for them to succeed is essential, and boils down to four major concepts:

Communication

Once a leader has chosen a successor, openly communicating these intentions to the team is key. Don’t underestimate the anxiety created in a company when there are numerous closed-door meetings, or when the owner is around less frequently but no one in a leadership role is being transparent as to what decisions about the future are being made. If employees think you are hiding something (and they can sense it, trust me), they will become suspicious of the new leader. After all, if you trust this person to take over the business, what’s to hide? You must find the “right” time to tell the team. Too early, and some might jump ship. Too late, and it will seem like you’re pulling the bait and switch. The situation for each business is different, but make sure you make the announcement with enough time for the team to get accustomed to the change before it happens.

Empowerment

Prior to the transition, it is imperative that the incoming leader be given leadership responsibilities. This will give them a chance to demonstrate their worth, and a buffer zone to allow for learning and development. Additionally, it will allow the team to get used to the new leader making decisions, rather than an abrupt change.

Respect

The team ostensibly trusts you, the current leader, and will look to you for acceptance of the new leader. Treating the incoming leader with respect will go a long way to ensure the team will respect and trust them as well. Lead by example.

Honesty

The chances that the incoming leader is already perfectly set up to succeed are slim to none. As the predecessor, you must give them honest feedback so they can learn and grow and be prepared when the time comes. Many of my clients have a difficult time with this since the new leader is often their child. But without this respectful but “tough love,” you are essentially setting up your child for failure, something no parent, and no business leader wants to do.

Leaders aren’t made, they are grown. As the outgoing leader of a company, you must do everything in your power to foster that growth and clear a path for success.

Date: Jan 09 2018

How to start a family trust

What is a Private Family Trust Company?

A private family trust company (PFTC) is a state-chartered entity designed to provide fiduciary services to members of a family. PFTC is distinct from a “family office” in that it can serve as a fiduciary under state law.

Private family trust companies can take on many responsibilities commonly performed by the family office, including investment and financial management, accounting, and recordkeeping. They can also operate separately from the family office, while still relying on it for administrative and back office support through a service contract.

Private Family Trust Company Advantages

Every family has its own reasons for establishing a PFTC, but some of the primary advantages include:

  1. A permanent trustee that can adapt to changing family dynamics over time, as opposed to an individual trustee, which oftentimes presents succession concerns.
  2. Consistency and continuity of a trustee that is knowledgeable about the family. Since the PFTC serves as trustee and the board of directors includes several trusted advisors with, ideally, differing ages/tenures, it preserves an advantageous “institutional memory.”
  3. Enhanced flexibility and control over decision making. Families can choose board members, draft policies and procedures, structure the organization to suit their needs, obtain voting power for important decisions, and arrange the distribution process to their liking.
  4. The ability to contribute to the investment and asset management process through participation on the investment committee of the PFTC. In addition, families can be more involved in the drafting of the investment and asset management policies and procedures. This level of involvement is unlike that of a traditional trustee.
  5. Acting through directors/officers and errors/omissions insurance provides increased liability protection for decision makers. In addition, in regulated states, it is more difficult to pierce the corporate veil.
  6. Better decision-making with respect to closely held and family owned assets by involving multiple trusted advisors, including lawyers, accountants, investment managers, and others who are intimately familiar with family assets.
  7. Greater control over trustee fees and costs through ownership, involvement, and decision making in the PFTC.
  8. Enhanced privacy. The family has more control over the PFTC and the disbursement of information. A large institution is not involved in the day-to-day administration, and there are fewer people privy to family issues and concerns. In addition, some states have laws that reflect this privacy concern. South Dakota, for example, has a total seal forever upon filing of all trust documents.
  9. Ability to integrate the next generation in administration of the family enterprise through involvement in board meetings, committees, and decision making. This level of involvement is unlike that of a traditional trustee situation where family involvement can be somewhat limited.

Families that utilize a family office structure are well-equipped to transition to a PFTC structure. The families can choose their long-time trusted advisors to run the private family trust company, all while concurrently integrating the next generation into the family’s wealth planning and management.