Should Married Couples Set Up One Joint Trust or Two Separate Trusts?
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- Опубліковано 18 жов 2024
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Married people often want to arrange their estate so that their surviving loved ones avoid the court and attorney involved probate proceedings. So these married couples often look into establishing a probate-avoidance revocable living trust since assets titled in the trust are not required to go through the court-supervised probate.
Married couples often inquire whether it would be better for the married couple to establish one joint revocable living trust, or whether it would be better for each spouse to establish their own living trust.
While joint trusts are more common, particularly in community property states, separate trusts for each spouse have their place. For example, some couples who get married later in life having had children from a previous relationship, often establish a prenuptial agreement with the goal of keeping all assets separate. The spouses often have different heirs, different distribution schedules, and different successor trustees. Having separate trusts may make more sense in these circumstances.
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This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
As usual, I agree with you. Separate assets, I might recommend separate trusts. Otherwise I almost always recommend a joint trust.
Great minds think alike KK! 🤔
In Washington State, it is indeed permissible to create Joint Wills.
I understand that surviving spouse can receive monies from deceased B trust for a few special areas like medical, education, and support. What prevents the surviving spouse from depleting the B trust assets before using their own trust assets ? Does the B trust need a specifically worded protection clause to prevent this ? Thank you very good explanations !
Two trusts allow for double the estate tax deduction useful now when they are talking of reducing it fro 11.7 to 3.6. Paying tax on 3.6 is a lot of money.
I am not sure I understand when you say assets are divided in a joint trust at the death of first spouse in a joint trust. Is that state specific? I was under an impression that the alive spouse will take over as the sole trustee and manage the trust independently. Moreover, there is a marital deduction anyway for the alive spouse so why do we have to divide the assets at the death. In your example you said that at John's death his assets will go to John's trust or the deceased trust. That was confusing. I appreciate your time if you can explain. Best, PA
Great content to provoke some thought!
How about all properties in business LLC Titled . What will trusts to do…
Love your videos!
How does a Trust and Will come into play if you exclude spouse from them especially when the law states 1/3 or some percentage of your assets will go to your surviving spouse?
Paul, with joint trust, can the surviving spouse owns everything and move on with the same joint trust until the surviving spouse dies, or must the surviving spouse pay the estate tax and convert the joint trust into a separate trust if the surviving spouse wants to control everything? Maybe you could comment in a future video on how an A-B trust come into play for the topic. (Likewise, if there are separate wills and all the properties are jointly owned, can the surviving spouse owns everything without having to pay the estate tax?)
As I watch more of your videos, I think I know the answers of my own questions. Here is another excellent video to follow up. Thank you. (ua-cam.com/video/zbBbVwhbEEI/v-deo.html)
Hi Paul, would naming your joint Living Trust "Jim & Jill Jones Living Trust" be ok instead of using full names for both spouses? TIA
Hi - Thanks for sharing your knowledge through your videos. I'm single and am thinking of setting up a joint trust. Any thoughts on tax ramifications?
With an A an B trust is it true that the property in the B trust (Deceased) incurs capital gain taxes upon sale of real estate later by beneficiaries? If so why is that not highlighted ? I understand that the A trust gets a stepped up basis and no capital gain taxes. Thank you !
In a community state, can we put a provision where it splits 70/30 instead of 50/50 where 30% go to surviving spouse’s trust while 70% go to deceased spouse’s trust and still allow income distributing to surviving spouse?
I'm wondering if I could be married or insured without my knowledge? Because there's been organized strategic lifelong grooming, control and trauma that escalated the last 7 years. Grew up very poor, family income improved, mine didn't. Now im 44 and seeing involvement in cycles from birth that blows my mind. I'm pretty close to death or institutionalization because ill look crazy if i break away without knowing what really is happening without resources. Could a child have a marriage to someone elderly and now deceased? Something about sandy hook in the early 80s. Is there a way to find out? And ensure nobody gets anything something happens to finish me off? Insurance ensureance? Did i invent that last word? Probably this is gonna look weird, but im serious.
Great topic.
Are there issues with a Joint Trust and a Single Trust. I have a legacy to protect for my children from a previous marriage. My husband does not have children.
We have this same situation. Did you get an answer or come up with a plan?
Pending on your state.
Working on my revokable joint LT now. From what I’ve learned is your previous LT that was created originally with/for your sole from that marriage will always be legally secure/saved and be appointed the way that LT states and it secures your children trust/legacy. Just remember to add them again to you new Joint LT as your beneficiaries to be your heirs again of any new assets you’d like then to inherit that you and new partner gained just in case something should happen to you and current partner, or both that your assets go to your children or/or whomever your partner selected as his heirs will go to his choices but I would select you children for your new assets in order to avoid probate on new assets between you and partner
You can put provision in your new joint LT to state your sole children only are your heirs for that for this particular LT assets too (I input my sole children only so upon my death should my partner remarry and have children or adopted those children cannot inherit any of my assets, only my sole children)
Hope that makes sense. Hope you created and it all worked out. 😊
Hi I am getting married in March. I have a lot on my plate- as in 3 homes under my name. How long does the trust take to do? Is it too late for me to create a trust covering all homes, and accounts etc... or can I do after the wedding?
Do this before you get married
For separate trusts, can we still delay the payment of estate tax of first spouse to die to the time of the death of second spouse?
Is a Trust just a prenup to benefit the husband ? ? ? ? ? ? ?SERIOUSLY