Kent area residents who are thinking about estate planning may want to spend some time investigating separate trusts. There are often many benefits for married couples who create separate trusts in their estate plan.
One benefit of a separate trust is that people can isolate creditors from the other spouse. In a separate trust situation marital assets are divided equally among the couple's individual trusts. This can protect the couple's assets from judgements and creditors. If one spouse has a catastrophic lawsuit filed against that person, then only that person's assets are at risk and not the person's spouse's assets. Therefore, this protects half of the couple's estate. If they had joint accounts the entire account could be at risk.