A common misconception holds that living trusts are only for the very rich. The belief may stem from history; in the 16th century Britain kings often controlled their lords’ power by seizing and distributing their lands as they died; the structure of a trust allowed circumvention by deeding property to the church, with the understanding it would later revert to the proper heirs. 
By measure of the 2010 Survey Of Consumer Finances only 1.3% of Americans have received monies through a trust.
Yet, the median amount is a moderate $285,000, and with as little as $100,000 the benefits can be significant:
- The lengthy and slow probate process can subject funds to fees and charges amounting to between 2% and 4% of total estate value.
- A trust avoids probate as it is private; as a distinct separate legal entity, distributions occur without court involvement.
- Appointment of a trustee ensures that future decisions can be placed in effect long after the trust is created.
- A trust fully utilizes each person’s Unified Credit or the State estate tax exemption. Mandated by Congress, it will shelter, per person, just over $5 million or $675k(in NJ), whichever amount is preferable. But, the trust should be structured with “A-B Provisions”, the death of one spouse separates the trust into two parts thus enabling the shelter from estate tax.
It is important to note that as total funds increase beyond that amount, estate taxes of up to 35% take effect. Living trusts are easy to set up, low-maintenance, and keep finances out of the public eye even after death. Consultation with an attorney specializing in estate planning can insure that your assets are protected; start a conversation with us today at info@lawesq.net.
I think tat Trust can and should be used to keep our loved ones out of Court. Can you think of anything worse than having to go to court to sort out the deceased assets immediately after their death? So yes any Estate in excess of $100,000 should be in a trust. The Trust has it’s Living benefits also. If one becomes disabled, they may need to have a Guardian appointed. That can be cared for in the Trust. Also the timing of gifts to minors and young beneficiaries can be delayed until they are mature enough and to make sure that they are able to manage the property.