Planning for the future and the importance of a marital trust
Planning for your future is something you have been doing your entire life. Plan for college, plan for a career, plan for your family, and plan for your retirement. But what about planning for after retirement, when you have passed from this world?
With proper estate planning, you can make arrangements to keep your family financially secure even after you are gone. The most common estate planning tool is a will, which addresses the division of your estate among your beneficiaries. In addition to a will, another important estate planning tool is the marital trust. This document provides further protections to both your surviving spouse and your children.
Benefits of the marital trust
There are no guarantees of what the future will bring. It is very possible that once you pass, your wife may decide to remarry. At this point she would have inherited the majority of your estate. What if she decides to will your joint assets to her new spouse and leave nothing to your children?
The marital trust includes provisions to allow your surviving spouse solid financial stability while protecting the property from the claims of her second husband.
The property you choose to include in the marital trust will qualify for the marital deduction from your entire estate, however it will not be subject to estate tax. This allows you to transfer unlimited amounts of cash or other assets to each other both during your life and at the time of death without incurring gift or estate tax liabilities.
Types of marital trusts
Like most estate planning tools, the marital trust comes in several different forms, allowing you to choose the one that fits your circumstances. The type of marital trust that will apply in your case will depend on your specific situation. An attorney can help you understand the options available in Florida and how they apply in your case.
Estate planning is an important part of life that can have huge consequences after your death. Take the time to plan for your spouse and children accordingly.