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Can You Use a Spousal Trust in Texas to Save Money? (Flower Mound, TX)

Posted by Kendall Financial in Dallas-Fort Worth-Arlington, TX on Apr 28, 2008

Estate planning is an important part of your financial portfolio, especially when you need a spousal trust to protect your family. Without careful, effective planning, your estate can wind up in probate for months, even years, and can eat away at the assets in the estate with lawyer’s fees and court costs. That’s why it is so important to make provisions to care for your spouse and children financially while the details of your estate are settled. One way to be certain your spouse will be provided for after your death is through the proper use of a spousal trust. Kendall Financial has experienced advisors that can help you set up a spousal trust to protect your family through the most difficult time of their lives. Call Kendall Financial today at 972-874-8757 or visit their website at www.kendallfinancial.net to find out how a spousal trust can help save your family time and money while your estate goes through probate.

A spousal trust enables you to pass certain assets into a trust for the surviving spouse upon the grantor’s death. The trust is not considered part of the estate and is not subject to estate taxes. It also allows the surviving spouse to benefit immediately from the assets in the trust. Your spouse is the only person entitled to the trust and may receive income from the trust for the rest of their life.

A spousal trust provides another tax advantage for your surviving spouse. Upon the death of one person in a marriage, any income is now reported as a sole income rather than two people. This will immediately put the survivor into a higher tax bracket and can diminish his or her remaining income considerably. However, with a spousal trust in place, the trust provides protection because, for tax purposes, the income is divided between the trust and your spouse. The savings can be considerable.

Any property can be placed into a spousal trust. When the trust is established, it can be set up that upon the death of your surviving spouse all assets pass on to your children or other named beneficiaries, while remaining free from estate taxes.

There have been changes made in Congress regarding estate tax laws that can be confusing. To make sure you understand the proper set up and distribution of a spousal trust, as well as other types of estate planning, contact Kendall Financial today and speak with a professional financial expert regarding your specific needs. Visit their website at www.kendallfinancial.net or call 972-874-8757 now and plan for the future security of your spouse and family.