Why Would I Use a Trust Instead of a Will?

Everyone is aware of the fact that a will can be used as a way to state your final wishes when you are planning your estate. However, under certain circumstances, a trust of some kind can be a better choice. We will look at some of these scenarios in this blog post. Estate Tax Exposure If you maintain personal possession of your assets and arrange transfers through the creation of a last will, these resources would be part of your taxable estate. Yes, there are taxes on large asset transfers that can come into play after you pass away. We have a federal estate tax to contend with in all 50 states, and this tax carries a hefty 40 percent maximum rate. The exclusion is $5.43 million during the current calendar year. Anything that you are transferring that exceeds the amount of this exclusion is potentially subject to the federal death tax. There is a caveat to the above with regard to asset transfers between spouses. There is an unlimited marital deduction that allows for unlimited asse


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