A family trust is a legal arrangement where a person, known as the trustee, holds and manages assets for the benefit of family members, referred to as beneficiaries. This setup allows for the efficient distribution of wealth, often avoiding probate and reducing estate taxes. Family trusts can include various assets, such as cash, real estate, and investments. They provide a way to protect family wealth, ensure financial support for dependents, and maintain privacy regarding the distribution of assets after the grantor passes away.