What are the best trusts for married couples? Consider these options.
As you prepare your estate plan with your spouse, you may wonder which Trusts can help you most. Trusts are an essential part of estate planning and can help you pass down your assets and wealth as effectively as possible and help your heirs avoid probate. One of the best trusts for married couples is a revocable living trust. However, you must also consider whether Separate or Joint Trusts are best. Your Millman Law Group can help you decide which tools are best for your estate plan.
What Are Revocable Living Trusts?
A revocable living trust is an estate planning document in which the terms can be altered at any time. This is different from an irrevocable trust in which the terms are fixed. A revocable living trust offers someone a lot of asset protection and flexibility, as it can be changed or revoked during that person’s lifetime. It also provides privacy, as it is less likely to go through probate and the courts.
Separate or Joint Trusts?
Typically, a revocable living trust would be filed as a separate trust by each spouse, but sometimes a joint trust is a better option. A joint trust may be best if the couple is comfortable owning all assets jointly and with the surviving spouse inheriting all assets. Separate trusts offer more protection, but joint trusts are easier to maintain. Consider the following before deciding on the best trusts for your marriage:
- Tax Implications of Each Trust
- Asset Protection Goals
- Current Ownership of Assets
- Components of the Trust During Your Lifetime
- Components of Trust After Your Death
Separate Trusts: Pros and Cons
Separate trusts may be the best trusts for married couples if one of the spouses has assets inherited from a family member or previous marriage. If you have a prenuptial agreement, this type of trust also offers more individual protection and guarantees that your assets go to selected beneficiaries.
Separate trusts also offer more protection from creditors and taxes. Every spouse’s trust may be changed or altered whenever necessary or desired; however, this can be a more complicated and expensive process overall.
Joint Trusts: Pros and Cons
If you feel comfortable with the surviving spouse inheriting all assets, joint trusts offer a simpler process with extra advantages. Joint trusts are the best trusts for married couples who are very stable and secure in their future plans. This couple will most likely be the joint co-trustees of their assets and enjoy a great deal of flexibility over the trust while they are alive. However, if one spouse has a history of creditor claims and debts, consider carefully how that may impact the surviving spouse.
Ultimately, your Millman Law Group attorney can help you determine the best decisions for your estate plan.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.