Understanding Joint and Separate Trusts for Married Couples

When planning your estate, it's crucial to understand the differences between Joint Trusts and Separate Trusts to make an informed decision that aligns with your needs and circumstances.

Understanding Joint and Separate Trusts

Separate Trusts

Separate Trusts involve creating two distinct Trusts, one for each spouse. They offer:

• Ease of Creation: They can be established relatively easily.
• Flexibility: Separate Trusts provide more control over individual assets over time.
• Tax Efficiency: They can potentially mitigate negative tax consequences.
• Administrative Simplicity: Managing these Trusts can be less complex after a spouse's death.

Joint Trusts

A Joint Trust is a unified document that encompasses both spouses, with provisions for the occurrence of each other's death. Its advantages include:

• Simplified Funding: Funding a Joint Trust is generally more straightforward than funding Separate Trusts.
• Reduced Administration: It entails less administrative effort following the death of a spouse.