Hello BH,
Situation- couple lives in non community property state and chose to combine assets upon getting married - No pre-nup or separate accounts except a rental property that was purchased before marriage.
Total NW approx $2m. Met with an attorney last month with the intention of setting up a joint family trust but they advised setting up separate trusts for each spouse. Attorney used step up in basis as the primary reason to go separate trust route and the hypothetical of surviving spouse changing benes of family trust if they remarry post death.
Separate trusts seems administratively burdensome and unnecessarily complex with no taxable estate (at this point). In case it's relevant one of us will inherit $3m in trust but thankfully parents are still healthy and active and hopefully that wouldn't be for many years. The inheritance will be kept as separate property.
Can someone advise if we're missing something? Is it possible attorney wants to draw up two trusts for financial reasons as opposed to one?
Situation- couple lives in non community property state and chose to combine assets upon getting married - No pre-nup or separate accounts except a rental property that was purchased before marriage.
Total NW approx $2m. Met with an attorney last month with the intention of setting up a joint family trust but they advised setting up separate trusts for each spouse. Attorney used step up in basis as the primary reason to go separate trust route and the hypothetical of surviving spouse changing benes of family trust if they remarry post death.
Separate trusts seems administratively burdensome and unnecessarily complex with no taxable estate (at this point). In case it's relevant one of us will inherit $3m in trust but thankfully parents are still healthy and active and hopefully that wouldn't be for many years. The inheritance will be kept as separate property.
Can someone advise if we're missing something? Is it possible attorney wants to draw up two trusts for financial reasons as opposed to one?
Statistics: Posted by curious_georgey — Mon Nov 04, 2024 8:39 pm — Replies 0 — Views 172