Estate Planning Red Flag — You and your spouse have a joint revocable trust

Description

Abstract: In both community and non-community-property states, joint trusts offer many of the same benefits as separate trusts — including probate avoidance, guardianship avoidance, privacy, and asset management in the event of a spouse’s incapacity. But they don’t provide the same level of creditor protection as separate trusts. As this article explains, those living in a community property state should weigh the asset protection benefits offered by separate trusts against a joint trust’s tax benefits. And those living in a non-community-property state also need to consider the potential tax pitfalls of a joint trust.