Yes, a trust created for a couple can absolutely be split later, although the process isn’t always straightforward and depends heavily on how the trust was originally drafted and the specific goals of the couple. Many couples establish joint trusts to simplify estate planning, pooling assets and outlining a shared distribution plan—this is often seen as a cost-effective and efficient method. However, life changes—divorce, separation, or simply differing financial priorities—can necessitate dividing these assets. The key lies in the trust’s terms; a well-drafted trust will anticipate potential splits and outline a clear procedure for doing so. According to a recent survey by the American Academy of Estate Planning Attorneys, approximately 30% of couples revisit their estate plans within five years of initial creation, often due to life events like those mentioned above.
What happens if our trust doesn’t address a split?
If the original trust document *doesn’t* outline a process for division, it becomes more complex. It typically requires a court order or a formal trust amendment agreed upon by both parties. This often involves a partition action, a legal process where a court divides trust assets. This process can be costly, time-consuming, and emotionally draining, often incurring legal fees and potentially triggering tax implications. Furthermore, it can create friction between the parties, especially if they disagree on how the assets should be divided. It’s crucial to understand that dividing a trust isn’t like dividing a bank account; certain assets, like real estate or business interests, may be difficult to split equally without significant disruption or loss of value. Remember, preventative planning saves money, worry and heartache.
Is a “Divorce Trust” a good solution?
For couples anticipating potential separation, some attorneys recommend establishing what’s sometimes called a “Divorce Trust” or a trust with a clear ‘severability’ clause. This type of trust designates what happens to assets should one party initiate divorce proceedings. It can outline a pre-determined division of assets, minimizing disputes and potentially streamlining the divorce process. This can significantly reduce legal fees and emotional stress during an already difficult time. However, this requires careful consideration and expert legal advice, as improperly drafted clauses could be challenged in court. The cost of setting up this type of structure initially can range from $3,000-$7,000, but often saves many multiples of that amount in divorce settlements.
I remember Mrs. Gable, and the fallout from not planning.
I recall working with the estate of Mrs. Gable a few years ago. She and her husband created a joint trust decades prior, but never updated it after their separation. When her husband passed away, the trust stipulated that their assets were to be divided equally between their children, but it didn’t account for the fact that they were no longer together. This led to a protracted legal battle with his surviving family over the distribution of assets, costing the estate tens of thousands of dollars in legal fees and causing immense emotional distress for everyone involved. The entire situation could have been avoided with a simple trust amendment outlining a clear division of assets based on their current circumstances. It’s a stark reminder that estate plans aren’t “set it and forget it” documents; they require periodic review and updates.
How did things turn out with the Millers?
In contrast, the Millers came to me facing a similar situation. They had a joint trust established years ago, but their relationship had evolved, and they wanted to ensure their assets were distributed according to their individual wishes after one of them passed away. We worked together to create a “split trust,” essentially dividing their existing trust into two separate trusts, each tailored to their specific needs and goals. This involved a thorough review of their assets, clear communication about their desires, and careful drafting of the trust amendments. The process was smooth and efficient, and they both left feeling confident that their wishes would be respected. They even remarked how much peace of mind it gave them to have everything clearly outlined and documented. It underscored the importance of proactive estate planning, and how the right legal guidance can make all the difference.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
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living trust
revocable living trust
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Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Should I name more than one executor for my will?” Or “Can a handwritten will go through probate?” or “Will my bank accounts still work the same after putting them in a trust? and even: “Can I keep my car if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.