When it comes to estate planning, one of the most important decisions is choosing between individual and joint trusts. At Hargrove Firm, we understand this choice can significantly impact your family’s future, particularly for those living in non-community property states. While joint trusts might seem like the simpler option initially, individual trusts often provide substantial benefits that make them the preferred choice for many of our clients.
Why Individual Trusts Often Make More Sense
Our experience has shown that separate trusts offer several key advantages in estate administration and protection. When individuals maintain their own trusts, we see clearer asset separation, which proves invaluable during estate administration. This separation ensures a smoother transition for loved ones and simplifies the trustee’s responsibilities.
Asset protection represents another crucial benefit of individual trusts. By maintaining separate trusts, assets remain distinctly segregated, providing better protection from individual creditors and reducing exposure to shared liabilities. This structure can be particularly important in protecting your family’s wealth over the long term.
Tax Planning and Record-Keeping Benefits
Individual trusts also offer significant tax advantages. They provide clearer determination of step-up basis at first death and make it easier to implement sophisticated tax planning strategies. Gift tax tracking becomes more straightforward, and there’s no need to maintain complex records of shared contributions.
The Lifetime Protection Trust Enhancement
At Hargrove Firm, we take trust planning a step further by incorporating Lifetime Protection Trust (LPT) provisions. These provisions add an extra layer of security by offering:
Making Your Choice
While joint trusts can work well in certain situations, particularly in community property states, they often present challenges that individual trusts avoid. These challenges might include:
Our Online Estate Planning Services
Hargrove Firm is proud to be the only national law firm to provide estate planning services to its clients online through a technology called NetLaw. This innovative partnership allows us to offer premium legal services nationwide while maintaining the personal touch and expertise you expect. Through our online platform, you can begin your estate planning journey from the comfort of your home while still receiving expert guidance from our attorneys. Learn more about our online estate planning services.
Ready to Protect Your Family’s Future?
Whether you’re considering creating new individual trusts, reviewing an existing joint trust, or exploring your options, our team is here to help. Contact us today to discuss your specific needs and goals, or call (833) HARGROVE to speak with one of our experienced attorneys.