It is common for people to think about leaving their legacy to their family when they get older. However, choosing a trustee among family members can be difficult without considering how it will affect their relationship.
What are the reasons for setting up multiple living trusts?
In a straightforward sense, one living trust should benefit everyone in the family. It usually does unless you have a more complex family dynamic, which may require you to set up multiple living trusts to accommodate the situation. Or, if you have special beneficiaries you would like to plan for, then more than one living trust may suit you. Here are some cases to consider when setting up multiple living trusts:
- You have a blended family and consider your spouse’s family beneficiaries.
- You have been married multiple times and have an heir in each of those marriages.
- You have a relationship with someone with disabilities and would like to arrange a trust for them to subsidize their living expenses.
- You may have a charity for which you want to set up a trust.
In addition, the assets within the trusts are subject to income and estate taxes, so the decision to set up multiple living trusts must be made based on the beneficiaries’ needs, desires and assets.
What is the best course of action when deciding on my estate planning?
If you cannot still decide based on your current knowledge of estate planning, you should seek legal advice from someone with experience in handling it. Get all the information you need from professionals that you can depend on and trust to help you through your planning.
