Manage All Your Personal Property

For married couples, the estate tax liability which would otherwise be due at the death of the survivor can be greatly reduced or completely eliminated by proper planning. This is particularly important in states that impose their own estate tax, and do not provide the “portability” currently available under federal law. This planning can be accomplished in a Revocable Living Trusts (“RLT”) (although it can also be accomplished through wills, this would require a separate probate at the death of each spouse). How much can be saved depends on the size of the estate and the estate tax laws at the time of the surviving spouse’s death. At the same time, the trust can also insure that the estate of the first spouse to die will ultimately go to his or her children (or heirs) even though the surviving spouse is provided the lifetime economic benefit of all assets and has complete management and control over the entire trust.

​

When a will goes through probate, the court freezes the assets and asks anyone to come forward and contest the will if they please. Creditors are invited to come forward with their claims and heirs may challenge certain bequests under the will if they are disappointed because they received less than they had anticipated.

With a living trust, however, assets are not frozen and can be distributed to your designated beneficiaries immediately without the highly technical and public requirements of probate.

A disgruntled heir would have to hire an attorney and file a civil suit against each beneficiary to stop distributions. In addition, you can protect a distribution to a beneficiary from being reached by the beneficiary’s creditors, from alimony attachments, and even from the beneficiary him/herself.