Trusts
While there are many types of trusts to accomplish many goals, the revocable, or “Living Trust” is the most common. The principal purpose of the Living Trust is to avoid the need for probate court in the distribution of the decedent’s belongings. For a married couple, a common secondary purpose of a living trust is the reduction of estate taxes. This goal, however, could also be accomplished with a sophisticated will.
While the avoidance of probate court may save some court fees and attorney fees, significant costs will still be incurred. The Trustee will need to properly account for and divide the assets of the trust in compliance with the law. This will usually require the help of an accountant and an attorney. In most cases, additional accounting will also be required during the life of the surviving spouse.
In addition to Living Trusts, other irrevocable trusts, such as life insurance trusts, gift trusts, qualified personal residence trusts, charitable lead trusts, charitable remainder trusts and others can accomplish a variety of tax and distribution goals.
If you are interested in discovering whether a Living Trust would be appropriate in your circumstances, please call The Alvarez Firm to schedule a free initial consultation.
