a family trust is a specific type of trust that families can use to create a financial legacy for years to come. at the core of a family trust, there are three parties: a grantor, a trustee and the beneficiaries. as you might expect, a family trust lists your family members as the beneficiaries. family trusts are a type of living trust, and they can be revocable or irrevocable depending on your wishes. you can use a family trust to specify when they can access their share of your assets and under what terms. family trusts can also be useful in estate planning if you want to avoid probate for your family.