Why You Should Choose A Joint Living TrustMost understand that there are several very notable differences in the way legal matters are handled when you are single compared to when you are married. While single people are free to leave their property to literally anyone they wish, married people are protected from being left with nothing, and losing the quality of life they had become accustom to. What this means is that there are some differences that are designed for a joint living trust that does not exist for a typical living trust. Deciding upon whether a joint living trust is right for you and your spouse is not always an easy decision. It is best to do some research, and then possibly meet with at least one possibly two lawyers to discuss your particular circumstances. Try to find a lawyer that offers a free consultation so that you are not paying hundreds of dollars only for an opinion. Once you have gathered all of the information you need, you can decide for yourself if a joint living trust really is your best option. First important thing to note is that a living trust does not replace a will fully. Many decide to use a living trust to handle some of their property, and a will to distribute the rest, such as personal items and so forth. There are some states that will require a will if you have a living trust, but a licensed attorney in your area will be able to tell you if your state has this requirement. Another important issue to note is that a living trust is typically set up so that there is no delay in managing property, whether it is physical or financial property upon death. There is no difference in this respect between a typical living trust, and a joint living trust. It is important to remember that even in a joint living trust, all assets placed into the trust, will pass through the trust, onto the desired beneficiary upon your death. If you have decided that the assets will be distributed slowly over time, then this is what will occur. This is exactly the same, regardless of which type of living trust you select. The differences are noticed when you start looking at estate taxes. A joint living trust can help reduce or even eliminate estate taxes by as much as 1.5 Million dollars for each spouse. This can be a huge savings that is not typically possible if only using a typical living trust. A joint living trust also has the benefit of being designed so that it will help protect, and allow someone else to take over as trustee, or Successor trustee if one or both of the spouses become incapacitated, whether physically, or due to mental problems. This helps assure that the grantors will still be provided for, as well as their beneficiary in accordance with the terms of the joint living trust. Another benefit of a joint living trust, is to allow some of the assets to stay in the trust, this provides assets for future generations, whether grandchildren, or even great-grandchildren who have not been born at the time the trust was created. This is something that some couples do consider, and is called a dynasty trust. As you can see, there are several good reasons to choose a joint living trust. The tax saving benefits alone are enough to make the decision for some, but as suggested previously consult with an attorney in your area to see if any laws in your area may cause a joint living trust to be inappropriate for your situation. With the multitude of options available, you should select the option that you understand and feel will fit your situation the best. |