What’s the difference between a family office and a trust?

What’s the difference between a family office and a trust?

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Madison Smith
Assistant at Parklin Law

A family office is a type of trust fund that can provide for the financial needs of a family’s extended members, including its founder, partners, and beneficiaries.

Not all trusts are family offices. There are several kinds of trust funds, but there’s one crucial difference between them: family offices are trusts that serve as holding accounts for money and property owned by the founder or creator of the trust. Other types of trusts are set up to distribute certain assets to specific beneficiaries at certain times or after certain conditions have been met.

Family offices can cover almost any financial need. Often, they will be used to store money set aside for heirs and dependents who don’t yet need the money for their own basic needs. However, family offices can also be used to pay for college tuition and other educational expenses, medical bills, travel costs, weddings and more. They can also include assets set aside for business ventures, pet trusts, relationship agreements, and more.

There are a few key differences between a family office and a trust. A trust is generally used for assets that are going to be passed down through a family over generations, like property or stocks. A family office, on the other hand, is set up by an individual or a business owner to manage their wealth and professional affairs. The family office has many of the same responsibilities of a trust, including asset management and estate planning, but the primary difference is that the trust is usually established when the person who establishes it is still alive, and able to direct how the money should be handled.

If you have any questions or in need a Trust Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

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Parklin Law
Estate Planning Attorney in West Jordan
https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Garland, UT, USA

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