Other Probate Avoidance Trusts

All kinds of trusts have been developed to save on taxes and let you put various kinds of restrictions on the use of property you leave. Usually, preparing one of these trusts requires the help of an experienced attorney.

Marital A-B Trusts

This kind of trust is common for married people who have children from prior marriages. It provides that when one spouse dies, the survivor gets the use of the deceased spouse's real estate, or the income from other kinds of property, for the rest of his or her life. But when the second spouse dies, the trust property goes to the first spouse's children. This way, the surviving spouse is financially comfortable, but the spouse's children end up inheriting their parent's property.

By leaving property to children instead of the surviving spouse, an A-B trust also offers estate tax savings if a couple has a combined estate worth more than $600,000. If one spouse left all his property to the other without this kind of trust, when the second spouse dies she would have an estate worth more than $600,000, which means it would be subject to the hefty federal estate tax.

Trusts for Incapacitated People

If you want to leave property to someone who is (or may become) incapacitated or has a serious problem such as alcoholism, you need a trust tailored to your situation. It's especially important to structure the trust so that the money available to the beneficiary doesn't jeopardize his or her ability to receive any government benefits that might otherwise be available.

Generation-skipping Trusts

These trusts are for extremely wealthy people who want to pass money to their children and grandchildren and ensure savings on their children's estate taxes. A trust can exempt up to $1 million from estate tax liability.

If you would like to advise us of legal problems, concerns or information important to senior citizens please click send us an e-mail.

Notice: The information provided is of general nature and is not intended to replace the advice and counsel of an attorney.