Estate Planning for Married Couples

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Wills & Trusts

     Once you have made arrangements to care for each other in the event of incapacity, make arrangements for the smooth transfer of your assets to one another upon death. These transfers may be outright or in trust. Also, do not forget to make arrangements for any eventual inheritance that may be left to your children. Sometimes it is wise to protect an inheritance both from and for your children. Testamentary trusts, whether established under a last will and testament, or under a revocable living trust, can provide considerable inheritance protection for your children from potential divorces, lawsuits, and bankruptcies, as well as from squandering.

Estate Taxes and the Credit Shelter Trust

     Properly drafted credit shelter trusts may save more than $1.5 million in unnecessary federal estate taxes. The emphasis here is on unnecessary.
     Fortunately, the Internal Revenue Code authorizes each person to protect up to $3.5 million in federal estate taxes. However, this tax exemption is not automatic and careful planning is required to fully maximize your federal estate tax savings.

Note: This is not a do-it-yourself project. Retain appropriate legal counsel to review your options.