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Dave Says: Creating a Family Trust

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Dear Dave,

When should a couple think about creating a family trust?

Angie

Dear Angie,

A family trust can take different shapes. Couples with young kids sometimes consider creating a trust in the event that they both die unexpectedly. In these situations, a family trust would be managed for the care of minor children.

Some people also create trusts for the purpose of avoiding estate taxes. These trusts aren't as common, because you don't have to worry about estate tax problems unless you have assets in excess of $5 million, based on current law.

But to be honest, Angie, I can't think of a situation where you'd want to create a family trust to manage money while you're alive. Unless, of course, it contains some kind of estate planning implications.

—Dave

 

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About The Author

Dave
Ramsey

Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, and EntreLeadership. His newest book, written with his daughter Rachel Cruze, is titled Smart Money, Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations.