Monday, December 13, 2010 NEET Tips
NEET Tips answers questions posed online to the NEET website.
Why do my parents have two trusts instead of one?
In most common law states, including Vermont, estate planning attorneys have historically drafted an individual revocable living trust for each spouse. There was uncertainty about tax implications of a single joint trust, and it was thought that administration of a single trust upon the death of the first spouse would be easier.
Following widespread use of single joint trusts for couples in California, a community property state, joint trusts have become more popular in separate property states too. Through careful drafting, joint trusts can accomplish the same objectives as individual trusts, and are as easy to manage during the administration period following the death of the first spouse. Today, many estate planning attorneys prefer joint trusts because most couples are more comfortable with a single trust that holds their property together, rather than single trusts that require splitting joint assets between the two trusts. |