Joint Revocable Trusts Might Not Be Good To Have In Common Law Property States

There are many couples that benefit from joint revocable trusts, but these investment instruments might not be the best thing to have in a common law property state. There are many unintended income and transfer tax consequences as well as practical complexities that a surviving spouse might have to deal with if the other spouse passed away. To avoid many of these various difficulties it is important for the joint revocable trust to be carefully designed and implemented. This article discusses many of the possible tax issues that these types of trusts will encounter in common law states. There are a few practical considerations discussed in this article that a married couple will need to consider when setting up a joint revocable trust. It is a good idea to speak with an estate planning professional for more information.

See Jennifer M. Smith, Joint Revocable Trusts- Not Always The Best Choice in Common Law Property States, Greenberg Traurig Blog, December 23, 2015.