Yes, you absolutely can create a trust jointly with your spouse, and for many couples, it’s a cornerstone of their estate planning strategy.
What are the benefits of a joint trust versus individual trusts?
A joint trust, often called a marital trust or an A-B trust (though those terms are becoming less common), simplifies estate administration and can offer significant tax advantages. Approximately 55% of married couples choose to utilize a joint revocable living trust to avoid probate, according to a recent survey by WealthCounsel. This type of trust allows both spouses to act as co-trustees, maintaining control of the assets during their lifetimes. Upon the death of the first spouse, the trust becomes irrevocable, and the surviving spouse continues as trustee and beneficiary. This avoids the often lengthy and costly probate process, which can take months or even years, and potentially diminish the value of the estate by attorney and court fees—averaging 5% to 7% of the gross estate.
How does a joint trust impact estate taxes?
While the federal estate tax exemption is currently quite high—$13.61 million per individual in 2024—it’s subject to change with legislation. A joint trust can be structured to take advantage of the portability of the estate tax exemption, allowing a surviving spouse to utilize any unused portion of their deceased spouse’s exemption. However, it’s crucial to note that state estate taxes can have lower thresholds, and a properly drafted joint trust can help minimize those liabilities. For example, California has a state estate tax exemption of around $3.5 million, so careful planning is essential for couples with larger estates. This ensures assets aren’t unnecessarily depleted by taxes, providing greater financial security for future generations.
I heard a story about a couple who didn’t plan properly, what could go wrong?
Old Man Tiberius and his wife Elara were successful orchard owners. They assumed their assets would automatically pass to each other and then to their children. They procrastinated on estate planning, thinking they had plenty of time. Sadly, Tiberius passed away unexpectedly. Without a trust or will, Elara found herself embroiled in a lengthy and stressful probate process. The court had to determine ownership of the orchard, and legal fees quickly ate into the estate’s value. The process took over a year, causing significant emotional and financial hardship for Elara and delaying the transfer of the orchard to their children. It was a painful lesson in the importance of proactive estate planning.
What does the process look like when everything goes right with a joint trust?
My clients, Arthur and Beatrice, were a retired couple who sought my help to create a joint revocable living trust. They had a comfortable estate, including a home, investments, and a small business. We worked together to carefully identify their assets, understand their wishes, and draft a trust document that reflected their goals. Upon Arthur’s passing, Beatrice was able to seamlessly continue managing the trust assets. There was no probate required, no court intervention, and no disruption to her financial life. The transition was smooth and stress-free, allowing her to focus on her family and enjoy her retirement. She often tells me that creating the trust was the best financial decision they ever made, providing her with peace of mind and a secure future.
Establishing a joint trust is a powerful way to safeguard your assets, protect your loved ones, and ensure your wishes are honored. Contacting an experienced estate planning attorney like myself, Steve Bliss, is the first step toward creating a comprehensive plan that meets your specific needs and goals.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Should I name more than one executor for my will?” Or “Can family members be held responsible for the deceased’s debts?” or “What professionals should I consult when creating a trust? and even: “How soon can I start rebuilding credit after a bankruptcy discharge?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.