One of the most important things to do as a young family in Minnesota is to begin setting up your estate plan. Understandably, crafting an estate plan is quite complex, and it can be tough to determine if certain additions are beneficial. One of the most common questions is if a married couple should sign up for a joint trust. The following includes further details of a joint trust and the benefits that come with it.
What exactly is a joint trust?
The very first thing you must do is ensure that you understand what a joint trust is before adding it to your estate planning process. A joint trust, also known as a joint revocable living trust, is set up by two people. This is usually done by couples who don’t have complicated assets like businesses, real estate and stocks to their name.
Advantages of a joint trust
A joint trust could make things a lot easier for yourself and your family in the event that you pass away unexpectedly. This means that your family or living spouse is less likely to run into legal issues.
Another advantage includes the price of having a joint trust made. When you bring together your property, it becomes considerably less expensive to take on instead of individual trusts. You also have to consider the issue with tax owed. The taxes owed on an estate can be hefty if you surpass the federal estate tax threshold of $11.4 million. However, married couples who decide to combine their property with a joint trust are automatically bumped into a more favorable tax bracket.
As you can see from the information above, there are plenty of benefits to going this route. It is also important to consult with an attorney to ensure that any legal hurdles are taken care of along the way.
