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 distribution of wealth according to the wishes of the grantor, who creates the trust. Family trusts can help protect assets, reduce taxes, and ensure that family members are cared for financially. Family trusts can be revocable or irrevocable. A revocable trust allows the grantor to change or dissolve the trust during their lifetime, while an irrevocable trust cannot be altered once established. This flexibility can be beneficial for estate planning and managing family wealth.