Joint Trusts in a Separate Property State: Time For A Second Look?
By: Teresa Nuccio, Esq. and Robert P. Wolfson, Esq., CPA
The use of joint revocable trusts in a separate property state has been a controversial subject for over two decades. What most commentators agree upon, even those critical of their use, is that the joint trust can be an effective planning tool if used under appropriate circumstances and drafted properly. With the federal estate tax exemption amount at an all-time high, such planning will likely become more popular, even though it can be appropriate in a taxable estate as well. The savvy planner will recognize when they are a good fit, when they are not advisable, and how to draft and fund them properly.
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