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Most people only need one trust

| Dec 18, 2019 | Estate Planning |

Those who are creating an estate plan in Louisiana or any other state may want to create more than one trust. While this isn’t always necessary, it is possible to have two or more trusts in effect at the same time. However, if the second trust is designed to rescind the first one, it is likely that the original document will no longer be considered valid. It is also possible that the second trust will be considered an amendment to the original document.

In such a scenario, the original trust remains in effect but with different terms. It is important to understand that it is possible to alter the terms of a trust without having to create a new document. This could be ideal for a parent who chooses to change how assets will be divided among his or her children.

For many people, it will be easier and less expensive to have a single trust within their estate plans. Those who want to make use of Irrevocable Life Insurance Trust trusts in addition to a revocable trust may find that there is no need to do so anymore. This is because the estate tax exemption for individuals has gone up significantly over the past several years. Married couples may obtain even more flexibility by combining their estate tax exemptions.

During the estate planning process, it may be a good idea for an individual to consider the potential benefits of using a trust. A trust generally takes effect as soon as it is executed, and it may offer greater asset protection than a will or other estate plan tools. An attorney may be able to talk more about the potential benefits of a trust or offer guidance as it relates to creating such a document.