Estate Planning for Couples: The Pros and Cons of Joint vs. Separate Trusts

ARTICLE | November 26, 2024

Authored by Vasquez + Company

When it comes to estate planning, married couples face an important decision: Should they establish a joint revocable trust or separate trusts? This article explores the advantages and drawbacks of both options to help you make the best choice for your family and financial goals.

Key Points:

• Joint Trusts: Simplified setup and administration, with equal control over assets. Ideal for couples who wish to combine their assets and avoid the complexity of managing multiple accounts.
• Separate Trusts: More control and protection for individual beneficiaries, particularly in cases of remarriage or concerns about creditors. Separate trusts offer flexibility to allocate assets as desired.
• Tax Implications: Considerations around federal estate tax exemptions and income tax exposure are discussed. Separate trusts may offer more opportunities to minimize estate taxes, especially if your wealth exceeds exemption limits.
• Long-Term Planning: Learn how your choice between joint and separate trusts can impact asset management, tax obligations, and future inheritance planning.

For more information, read the full article here.

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