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 Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.