A Joint Living Trust can be created by a person and that person's spouse. In some cases, this method is preferable to creating two separate Living Trusts, especially where assets to be contributed are held jointly and could not easily be divided to be placed into two separate trusts. Another advantage is that the joint trust is created in a single document rather than multiple documents. Typically, the Joint Living Trust provides for both spouses, who are the Co-Grantors, to serve as the initial Co-Trustees. They serve for such time as they are able and willing to manage the assets of the Trust during their joint lifetime. After the death, "disability" or voluntary resignation of one, the other can continue as Trustee. When neither Grantor serves as Trustee, a successor Trustee takes over the management of the Trust. The Joint Living Trust is "revocable," that is, it can be amended or revoked at a later time. Payments
During the Grantors' lifetime, payments of the net income of the Trust are made to the Grantors at fixed intervals. The amount of the payments can be changed from time to time at the request of the Grantors. When a Grantor dies, the Trust provisions designate the beneficiaries who will receive that Grantor's property, much in the same manner as a will. At the option of the Grantor, these provisions can include specific distributions and distributions of tangible personal property before the distributions of the remaining trust assets. The successor Trustee carries out these provisions in a role similar to that of an Executor. These provisions also allow the Grantors to include a trust share that will be maintained for the benefit of the Grantors' minor children through a trust for minor children. Advantages of a Living Trust
The Joint Living Trust is often viewed as a preferable alternative to the Will. Some of the perceived advantages of the Joint Living Trust relate to privacy, reduced probate costs, and management of assets. For more information, see the Trust vs. Will Comparison topic. And for a review of what to consider when deciding on a Living Trust, see the Factors to Consider topic. NOTE: This trust is not appropriate for couples with a combined estate (including life insurance proceeds and retirement plans) that exceeds the federal estate tax applicable exclusion amount ($3,500,000). |