The legal system in Alabama provides for many ways to protect your assets after you pass. This is especially crucial to consider if you have loved ones who you want to protect. The goal of setting up a trust is to make sure that your assets are divided in the manner that you see fit. One of the most popular is a joint trust.
Joint trust can be useful for couples
A joint trust is a form of estate planning that can be very useful for married couples who share certain characteristics. For example, it works very well if the couple has a long and stable relationship. There should be no thought of ever divorcing. They should be willing to identify all assets as being divided equally in half.
This arrangement works best if any children that need to be provided for come from the present marriage rather than previous relationships. It is also ideal if any debts owed are jointly owed by both parties. A wrench can be thrown in this arrangement if a creditor can come after only one party.
Joint trust needs to meet financial criteria
When planning your estate in Alabama, you need to be aware of certain key financial criteria. The total value of your combined assets needs to be less than the federal estate tax exemption amount. You must also be comfortable with the idea of your surviving spouse having control of all assets after you pass.
The process of creating a joint trust is fairly simple. A couple can do so by making a transfer of assets to themselves as co-trustees. They can then sign off on a specially created trust document. This will give instructions to their heirs as to what they wish done with their assets.