VBJ August 20
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THE VALLEY BUSINESS JOURNAL<br />
10 www.TheValleyBusinessJournal.com<br />
<strong>August</strong> <strong>20</strong><strong>20</strong><br />
Does My Spouse Need a Separate<br />
Estate Plan?<br />
Married couples will usually make<br />
their estate plan together, especially if<br />
they hold most assets jointly and have<br />
the same goal to provide for their family’s<br />
future. In that case, the surviving<br />
spouse would receive the majority of<br />
assets as primary beneficiary of a will<br />
or trust.<br />
This make sense especially if<br />
there are minor children to care for,<br />
or ongoing expenses that have to be<br />
covered. A couple could create a joint<br />
trust to include all assets, and when one<br />
spouse dies the other would take over<br />
as sole trustee to administer the assets<br />
according to trust terms.<br />
However, there may be situations<br />
where spouses elect to have separate<br />
estate planning documents, usually<br />
some type of trust. Those include:<br />
Creating a separate trust to protect<br />
assets from the creditors of one<br />
spouse<br />
If one spouse has creditors or liability,<br />
the other may be able to insulate<br />
some assets with a separate trust.<br />
Separate trust with spouse as<br />
co-trustee to manage assets<br />
Even when separate trusts are<br />
created, the other spouse can be named<br />
as a co-trustee to take over when the<br />
grantor spouse dies.<br />
In a second marriage where one or<br />
both spouses have property acquired<br />
prior to marriage, or there are children<br />
from the previous marriage.<br />
Second marriages are common,<br />
and any property acquired before remarriage<br />
would be separate property<br />
that a spouse may want to hold and<br />
distribute on their own. They may<br />
want to designate different heirs from<br />
the first marriage as well.<br />
One or both spouses receive or are<br />
expecting an inheritance they want<br />
to keep separate<br />
If one spouse receives or is expecting<br />
to receive a large family inheritance,<br />
they may want to have a separate<br />
estate plan to keep that property on<br />
their side of the family.<br />
There are no minor children as heirs,<br />
and the spouses want to designate<br />
certain assets differently<br />
Spouses may wish to distribute<br />
separate assets to specific heirs for<br />
personal or financial reasons.<br />
Potential tax benefits<br />
There could be the potential for reducing<br />
estate taxes for wealthy couples<br />
with separate trusts.<br />
Pre-nuptial agreements<br />
Pre-nuptial agreements may affect<br />
how assets are designated and owned,<br />
and thus distributed after passing.<br />
Legally Separated<br />
Couples that are legally separated,<br />
but not divorced, may want to have<br />
their own estate plan.<br />
If you are a married couple and thinking<br />
of making an estate plan, the attorneys<br />
at Shoup Legal can guide you in<br />
creating either a joint or separate plan<br />
to meet your unique circumstances.<br />
Contact the attorneys at Shoup Legal,<br />
A Professional Law Corporation at<br />
951-445-4114 or visit them online at<br />
www.ShoupLegal.com for more information.<br />
SHOUPLEGAL.COM<br />
LEGAL<br />
by by<br />
Andrea Steve Fillingim Shoup<br />
“<br />
This make sense especially if there are<br />
minor children to care for, or ongoing<br />
expenses that have to be covered. A<br />
couple could create a joint trust to<br />
include all assets, and when one spouse<br />
dies the other would take over as sole<br />
trustee to administer the assets<br />
according to trust terms.
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