FAQ Friday: Survivor's vs Family Trust

On Friday, April 29th, at 11am EST, Mr. Berger discusses what the difference is between a Survivor's Trust and a Family Trust?

A survivor’s trust is setup after one person passes away. It is a revocable trust and setup under the SSN of the survivor. We setup everything to go to the survivor after death which helps with administration.

This trust is also used in asset protection or plans to help with separate property. The trust is amendable.

A family trust is different. Half of jointly owned property goes to the family trust gets a step up in basis. Other names these trusts go by are credit shelter or bypass trust.

The trust can be the beneficiary or even all the descendants or random people. Those you list will have access to annual reviews of the Trust assets.

Family trusts are not amendable, but it can be spent down. Though it’s usually meant to be used for health, education or maintenance. This trust will need to file it’s own tax return.

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