Living trust for couples

Living trust can also be created by a couple. Each of the couple can create a separate trust, or they can create a common living trust. Both of the couple could transfer property to the trust. The income from the couple is divided between them.

Either you or your spouse can revoke the trust during the joint lifetimes of you, but it becomes irrevocable on the death of the first spouse. After the death of the first spouse, the second spouse enjoys the income of the trust. After the death of the second spouse, the property is distributed to the ultimate beneficiaries.

Consult an Estate law attorney to avoid further litigation in the future.

Living Trust and Taxes

• In a living trust the trust has to pay the income tax, or any estate tax or any gift tax which may be due at your death.
• You have to keep in record the income which comes for the trust.
• A living trust will not reduce your income taxes or any estate or gift taxes that might be due when you die.

Some general problems relating to Living Trust:

I and my husband created a joint living trust, but unexpectedly my husband died in a car accident. Can I revoke the trust?

You cannot revoke the living trust. Only you can enjoy the income of the trust.

After creating a living trust I bought a house. After my death, whether the house will remain the trust property?

Unless you transfer the title of the property to the trust, the property will devolve on your legal heirs.

My father has put me as the beneficiary of the trust. Can I bring the trust property to sale?

Since the property always belongs to the trust you cannot bring the property to sale. You can only get the income of the trust.

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