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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.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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Vasquez + Company LLP has over 50 years of experience in performing audit, tax, accounting, and consulting services for all types of nonprofit organizations, governmental entities, and private companies. We are the largest minority-controlled accounting firm in the United States and the only one to have global operations and certified as MBE with the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission.
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