“How do I know I need a living trust instead of a simple will or other related documents when estate planning in Connecticut?” If you have been wondering the same, you are not alone. Here are some factors and situations you need to consider when deciding if a revocable living trust is best for you.
If you are single
If you are not married and do not have children, a living trust may not be necessary. You can simply create a will that names your beneficiaries and how you want your assets to be distributed. However, if you have significant assets or want to avoid probate, a living trust could still be a good option.
If you are married
If you are married, you and your spouse can create a joint revocable living trust. This type of trust is often used to manage property held jointly by a husband and wife, such as the family home. If one spouse dies, the other spouse can continue to live in the home and manage the property without going through probate.
If you have minor children
Living trusts are essential for parents with kids. It ensures that the children are in good hands if something happens to you. So, if you have underage kids, you can name a guardian in your will to take care of them and a trustee in your living trust to manage assets for them until they reach adulthood.
Couples in second or later marriages
If you are in a second or later marriage, you may want to use a living trust to protect the assets you want to leave to your children from a previous marriage. You can create separate trusts for your kids and spouse. This can help ensure that your children inherit the assets you intend for them and that your current spouse does not inherit more than you wish for them.
A living trust seems like a good idea for almost every person. However, you shouldn’t do it if your aim is to avoid or minimize federal and state estate taxes because it doesn’t.