Trusts are often excellent if you want a complete, detailed, concrete estate plan that provides the greatest protection. When you’re married, however, you must look at things differently to ensure you make the best decisions for your family and your legacy. You must first decide whether to create a single Joint Trust or independent Separate Trusts for each of you. You can talk to an Estate Planning Lawyer in Reno to learn more about which options are better for you.
What factors should you consider?
Before going into the specifics of Joint Trust vs. Separate Trust, it should be emphasized that understanding the concepts of revocable and irrevocable is the single most crucial element of creating any Trust. Revocable trusts can be modified, altered, changed, or even disbanded at any point. On the other hand, irrevocable trusts cannot be amended without considerable difficulty and should thus be utilized with extreme caution and only in particular circumstances.
Regarding revocable trusts, certain components differ between joint and separate trusts.
- Asset Protection
Many couples who create an Estate Plan have asset protection as a primary goal. However, whether you create a Separate or a Joint Trust can have a significant impact on the amount of protection you provide. Most experts agree that Separate Trusts can give greater asset protection.
- Tax Benefits
A primary benefit of a well-designed Estate Plan may be to try to reduce estate taxes. Most people’s estates will not be required to pay federal taxes. However, it is still essential to think about your estate sensibly and diligently when it comes to taxes. State taxes could also contribute as a factor.
- During Couple’s Lifetime
Trusts of different forms can be handled in different ways during your lifetime. This can be true for both Joint Trusts and Separate Trusts. Since all assets are kept under a single trust, Joint Trusts can make things easier. Both spouses have equal influence over the management of shared assets held in the Joint Trust while both are alive.
Establishing Separate Trusts may be more challenging depending on how assets are titled and if they are held jointly. Assets may need to be divided in the title before being placed in individual Trusts. Since there are two Trusts, and each partner owns one, administering Separate Trusts during a couple’s lifespan can be more complicated and time-consuming.
Talk to a lawyer today.
If you have any questions about real estate, or trusts and wills, the best thing you can do is get professional legal help. An experienced real estate attorney can help you with any issues, so do not waste time and schedule an appointment today.