Can a married couple have two separate trusts?

Since each spouse is required to manage their own trust, separate trusts require more work. However, one spouse can name the other as a co-trustee so that both spouses can control all assets in the separate trusts.

Why would a married couple have separate trusts?

Separate trusts may offer better protection from creditors, if this is a concern. For example, at the death of the first spouse, the deceased spouse’s trust becomes irrevocable, which makes it harder to access by creditors. And yet the surviving spouse can still access it for income and other needs.

Can a trust be in two names?

Trusts can be both single and joint. Joint trusts are particularly useful in community property states, such as Arizona, California, Nevada, Idaho, New Mexico, Louisiana, Texas, Washington, and Wisconsin.

Which is the best revocable trust for a married couple?

A joint revocable trust is probably the easiest form of living revocable trusts for a married couple to use. A joint revocable trust merges the estate planning of a couple using a single trust document.

Can a joint revocable trust be a living trust?

Actually, you can draft a living trust so it is a joint trust, but the trust document can be written to also include separate trusts. There is only one document, but it describes a joint revocable trust and then it describes separate trusts for each spouse.

Can a joint trust be used for a common law couple?

So, technically the one trust document creates a joint revocable living trust and then a separate trust for the husband and a separate trust for the wife. Joint trusts probably shouldn’t be used between couples in a “common law marriage” or alternative lifestyle couples.

When to set up separate trusts for married couples?

For couples with equal incomes and assets, mostly separate finances, prenuptial agreement or second marriage, it may be more straightforward to maintain different trusts. Separate trusts can be set up so both spouses are co-trustees on each trust, or just one.

What should a married couple know about trusts?

Control and trust are main factors that married couples take into account when deciding to have separate Trusts or Joint Trusts. With a Joint Trust, when one spouse dies, the Trust does not become “irrevocable,” meaning it can still be amended by the surviving spouse.

Can a deceased spouse cancel a revocable trust?

The trust’s terms may dictate that the surviving spouse cannot change or cancel that portion of the trust agreement. Similarly, if each spouse has separate property in the trust, the trust terms can dictate that the surviving spouse cannot cancel or amend the part of the trust agreement that deals with the deceased spouse’s separate property.