Permalink Submitted by Alan Spross on Wed, 2009-09-09 22:21
If there are other purposes of the trust in addition to probate avoidance, then yes. But JTWROS already avoids probate, so you don’t need to fund the trust for that purpose. A trust attorney will often recommend putting everything that can be re titled into the trust so that the trustee will have control if the surviving spouse becomes unable to handle their affairs. There may also be a need for a credit shelter trust if the total estate will exceed federal and state unified credit amounts, so that both spouse’s exemption can be used. Creditor protection for trust beneficiaries and a controlled access to principal are other potential trust benefits.
Of course, JTWROS is not limited to spouses, and you often see it with a parent and child.
Permalink Submitted by Bruce Steiner on Wed, 2009-09-09 23:00
It depends on the reason for creating a joint account or living trust. There are reasons for creating joint accounts and for creating living trusts in some cases. But both joint accounts and living trusts are created far more often then necessary.
Permalink Submitted by Alan Spross on Wed, 2009-09-09 22:21
If there are other purposes of the trust in addition to probate avoidance, then yes. But JTWROS already avoids probate, so you don’t need to fund the trust for that purpose. A trust attorney will often recommend putting everything that can be re titled into the trust so that the trustee will have control if the surviving spouse becomes unable to handle their affairs. There may also be a need for a credit shelter trust if the total estate will exceed federal and state unified credit amounts, so that both spouse’s exemption can be used. Creditor protection for trust beneficiaries and a controlled access to principal are other potential trust benefits.
Of course, JTWROS is not limited to spouses, and you often see it with a parent and child.
Permalink Submitted by Bruce Steiner on Wed, 2009-09-09 23:00
It depends on the reason for creating a joint account or living trust. There are reasons for creating joint accounts and for creating living trusts in some cases. But both joint accounts and living trusts are created far more often then necessary.