Can a married couple have a living trust?
Both married and unmarried couples can create living trusts. Married couples should consider whether they live in a community property or a separate property state before deciding what type of trust to create. For many married couples, a basic joint living trust will meet their needs.
How does a married couple set up a living trust?
Under a typical arrangement, a married couple prepares a living trust, or more often, uses an online legal service or attorney to prepare one for them, and signs the trust. They then transfer assets they own separately or jointly into the name of the trust.
Who is the beneficiary of a living trust?
The couple serves as the trustees of the trust and have full use and access to the trust property during their lives as its beneficiaries. Usually, a living trust means that when one of the spouses passes away, the other spouse becomes the sole trustee and beneficiary. The living spouse continues to have full control and use of their property.
Do you have to file a living trust?
Trust documents do not have to be filed with the court. Married couples with large estates may be able to use a joint living trust to minimize tax burdens as part of their overall tax strategy. However, just creating a living trust and transferring assets into it is not enough.
What happens to property in a living trust?
After the second spouse dies, the property is typically distributed to the couple’s surviving children or held in trust for them. Although this is the most common arrangement, a living trust is a flexible document that can be tailored to fit a couple’s needs and desires.
Can a married couple have a revocable living trust?
When setting up Revocable Living Trusts, married couples can either have separate Trusts for each spouse or one Joint Trust. Absent complex tax planning needs (as would be the case if, for example, your estate was close to or beyond the current Federal estate tax exemption amount),…
Can a spouse be a trustee of a trust?
When you create a trust, you name yourself as trustee so you have control of the assets. Most married people name their spouse as joint or successor trustee. This could create problems if you become incapacitated and your spouse develops, say, dementia.
The couple serves as the trustees of the trust and have full use and access to the trust property during their lives as its beneficiaries. Usually, a living trust means that when one of the spouses passes away, the other spouse becomes the sole trustee and beneficiary. The living spouse continues to have full control and use of their property.
Trust documents do not have to be filed with the court. Married couples with large estates may be able to use a joint living trust to minimize tax burdens as part of their overall tax strategy. However, just creating a living trust and transferring assets into it is not enough.