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Commonly Asked Questions about Living Trusts for Couples

Limited Asset Protection: While it provides privacy, a living trust may not shield assets from creditors or lawsuits as effectively as an irrevocable trust. Funding Challenges: Transferring assets into the trust can be overlooked or require constant updates as financial situations change.
An irrevocable trust offers your assets the most protection from creditors and lawsuits. Assets in an irrevocable trust arent considered personal property. This means theyre not included when the IRS values your estate to determine if taxes are owed.
Simple Living Trusts for Married Couples Simple living trusts are often considered the easiest kinds of trusts to set up and keep. In a simple living trust, a couple can share the control and benefits of the trust while they are living.
If shielding assets from creditors is a concern, separate trusts usually offer greater protection. With a joint trust, if a creditor obtains a judgment against one spouse, all of the trust assets may be at risk.
Conclusion. In the right circumstances, utilizing an estate plan that involves a Joint Trust can simplify a married couples affairs and, as a result, make the administration process easier after death and ultimately lower costs.
A joint trust gives the surviving spouse more flexibility to use all of the assets of the trust after the death of the first spouse. A joint revocable trust is also easier to fund and maintain during a couples lifetime. All assets simply go into the same place; theres no need to decide which trust an asset goes into.
A lifetime trust, also known as a living trust, is a legal arrangement created during an individuals lifetime, where a trustee is designated to manage and control assets for the benefit of designated beneficiaries. What Is A Lifetime Trust | Advantages Disadvantages haileypettylaw.com lifetime-trust haileypettylaw.com lifetime-trust
Typically, when a married couple utilizes a Revocable Living Trust-based estate plan, each spouse creates and funds his or her own separate Revocable Living Trust. This results in two trusts. However, in the right circumstances, a married couple may be better served by creating a single Joint Trust.