Current Updates

Annual Trust Review

The beginning of the year is a good time to review the terms and provisions of your current trust document or think about establishing a new trust. Some of the key provisions to review on at least an annual basis are the successor trustee and beneficiary provisions of your trust. If there have been life changes to either the successor trustee or beneficiaries in the last year, then an amendment may be necessary.

Additionally, for most married couples, family trust documents have been set up under a classic A/B or A/B/C trust format, whereby the assets of the married couple are split into various trusts upon the first death of either spouse to protect against estate taxes. Due to the current high level of estate tax exemption and a newer concept called portability; a married couple can currently transfer up to $10,900,000 of assets estate tax free without having a complex estate plan in place.

Trusts can also be beneficial to people with any level of assets and can be very simple in nature. If you would like to see that your assets are efficiently distributed in accordance with your final wishes and without court intervention, then a trust is a necessary planning tool. Having a will alone may not be enough to keep your assets from being administered by probate court, which could lead to costly fees and undue delays in the distribution of assets to your beneficiaries.

If you would like to schedule an appointment to discuss any of the issues above, please contact your tax professional at KBCA at (775) 885-8847.