A spouse trust is a trust account which can be established to give your spouse the ability to defer taxes as well as to protect the family interests. This act settles that only the spouse can use the estate and no one else, during his lifetime. Upon your death, the trust splits into tow parts: The first part contains the deceased share of estate while the second contains the living spouse’s part. The first part remains irrevocable therefore it can’t be changed, while the second will be revocable, giving the right to the living spouse to change it, if desired. No taxes are required until the living spouse sells the assets or dies.
There are many reasons for creating a spouse trust. One can set up such a trust, only for some tax savings. In some situations the spouse is allowed to benefit from the capital and upon death, the children may be the next beneficiaries.
Another option is to designate your spouse as a co-trustee in your family living trust, in order to avoid the probate. Through this, both spouses can have control over the trust. This means that each of them can sell or give away the assets. It is required that both spouses give their signature as consent of transferring or selling the shared property. This process is a so called “shared marital trust”.
A family living trust is a legal document which is established during your lifetime. It acts like a revocable living trust, as it can be changed by the trust’s owner. It is mostly used to avoid taxes, manage the financial resources or keep the privacy of your belongings.
In order for you to understand what benefits a family living trust can bring, you should ask for a legal advice. A lawyer is able to explain the way you can wisely manage your belongings. Since the family living trust is a revocable trust, you can cancel it, make changes or even demand the belongings. Also you are able to set the welfare distribution upon your death, or even name new beneficiaries. This way you can avoid probate as you don’t own the welfare; only the trust does.
One of the rules that the spouse trust implies, is that the living spouse has the responsibility of managing the estate in the beneficiaries` interests, if there are no other requirements established in the document.
After the second spouse dies, the trust becomes irrevocable. Then the person who manages the assets distribution is the trustee, who takes the second spouse’s responsibilities.
In conclusion if the trust owner is a wealthy person he needs to hire an attorney who can represent him in order to achieve his goals and protect his welfare. If you don’t want your spouse to act as a trustee you should ask your lawyer for his legal support, for you to act as a singular trust owner for your share of the belongings, since the spouse trust document requires that the welfare is to be owned by the both spouses. You also should know that both spouses can revoke the document and the person’s welfare returns in its main form, as it was before the trust was settled.