Estate Planning: “Living Trusts”
There was a time in the not-too-distant past that trusts were being marketed as the best thing since sliced bread. Clients would come into our office saying they wanted a trust. When I asked what type of trust, or what the purpose of the trust, the response was always some version of :
“I don’t want to pay probate. And I can save money on taxes with a trust.”
Sadly, most of these were revocable trusts which were often referred to as ‘living trusts,’ which sometimes saved a few dollars of probate and rarely if ever saved any money on taxes.
Don’t misunderstand my point. . .we regularly draft trusts when the situation calls for it. However, a ‘one-size-fits-all’ trust, one that purports to save taxes, avoid probate, speed up distribution of assets (and perhaps even whiten your teeth!) is a creation of a marketing and sales force much more than a reality.
Planning with trusts is not only for the “Rich & Famous,” and a trust can be a solid piece of a well-crafted estate plan. Be sure it is the right trust for your needs.
Please contact Mateya Law Firm to help you with your estate planning and administration needs.