Family Trust
A family trust is a legal structure used to hold and transfer wealth under defined governance rules and beneficiary terms.
Definition
Definition A family trust is a legal arrangement where assets are held by a trustee for the benefit of designated beneficiaries under predefined rules. Trusts are used to manage governance, protect assets, and facilitate intergenerational transfer. In family office systems, trusts can be central ownership vehicles for both financial assets and operating company stakes. Context Trusts can separate economic benefit from day-to-day control. A trustee may have formal authority, while investment decisions are influenced by the principal, investment team, or family governance bodies depending on trust terms. This structure can be invisible externally, which is why trust-aware data modeling matters when interpreting ownership and authority. Why It Matters Trust structures affect who can approve actions, how liquidity can be accessed, and how decisions are escalated. For database users, a trust-aware understanding reduces incorrect assumptions about who “owns” or “controls” capital and improves decision-maker mapping. Key Takeaways Trusts are common in multi-generation wealth Control and benefit can be separated by design Impacts authority, liquidity, and governance Relevant for accurate mapping of family structures