Because a Living Trust avoids probate it provides privacy. Probate is a public process. Anyone can find out how much you had, to whom you left your assets, and other information about you. They do not even need a good reason. They could be nosy neighbors or relatives, or worse yet, they could be scam artists.
A Living Trust Can Reduce or Eliminate Federal Estate Taxes
With a living trust, a married couple can pass twice the exempt amount absolutely estate tax-free to their heirs. That means, in 2006, with proper tax planning a married couple can make a tax-free transfer of $4,000,000. A single person can pass $2,000,000 estate tax-free in 2006.
In 2010, there is no estate tax. However, in 2011 the maximum amount that can pass free from tax is at the same level as in 2002, $1,000,000 for a single person, $2,000,000 for a married couple with proper planning.
A Living Trust Allows You to Restrict How Your Estate is Managed and Spent Even After Your Death
It can provide for the care, support and education of your children by turning over assets to them at an age chosen by you. Even insurance proceeds can be paid to the trust so your successor trustee can manage them for the benefit of your family.
A Living Trust Can Protect Children From Their Creditors and Ex-Spouses
A living trust can leave your assets to your children in a manner that will reduce the ability of their creditors or ex-spouses to take your children’s inheritance from them.
For more information about Living Trusts or Probate, Please visit our website:
www.NJTrustLawyer.com
