When it comes to discussing your estate plan with a lawyer, they are going to go over your many trust options. If you are married, you are most likely going to want to consider a sweetheart trust. Here's what you need to know about this type of trust:
It Gives Your Spouse a High Level of Control:
In the event of your passing, if you have an established sweetheart trust, it is going to be heavily controlled by your spouse. This means that your spouse can make changes and distribute the money as they see fit. If you trust your spouse and feel that certain life circumstances may lead to the necessity of the trust being changed, then this is definitely a great option for you since your surviving spouse will likely know what you would have wished if you were still there to have a say in the way the trust is handled.
It's More Affordable:
A great benefit of a sweetheart trust is that it's much more affordable than other trust options. This is because there doesn't need to be any established income tax on the trust and your spouse will not have to conjure up documentation to make changes to the trust. If your spouse wishes to make changes, it can easily be done without your spouse having to hire a lawyer and pay legal fees as well as fees to file certain documentation.
Tax Exemption Cannot be Skipped to Another Generation:
It's important to note that the tax exemption your spouse receives from a sweetheart trust cannot be skipped to another generation. Once your spouse passes, for example, and the trust is left to your child or another person of choosing, they will be subject to the property taxes. This is something to note because, if this is the main reason for choosing a sweetheart trust, it may not matter too much in the end if your spouse passes soon after you. Of course, hopefully that is not the case, but it's definitely something to be aware of if your spouse has any health issues.
When you understand these things about a sweetheart trust, you can better determine whether or not it's the right trust option for you and your family. It's important to go over other options before choosing this alone, though, especially if you aren't sure you can trust your spouse to do with your trust what you would have wished.
For more information, contact a professional in your area or visit a website like http://wrightlawidaho.com/.