Are you and your spouse looking for ways to protect your estate and minimize your tax exposure in Spokane, Washington? Elevated Estate Planning, P.S., is here to help you move forward with a plan of action that protects your interests as best as possible. Contact us today at (509) 328-2150 to schedule an initial consultation with a Spokane marital trusts lawyer.
Our top-rated estate planning law firm has been helping families in Spokane navigate complex decisions in this area for years. Our Spokane estate planning attorneys have 25 years of combined experience and a deep understanding of how Washington’s estate tax laws apply to married couples. We can help you determine whether a marital trust belongs in your estate plan as soon as you’re ready.
How Elevated Estate Planning, P.S. Can Help With Your Marital Trust in Spokane, WA
Estate planning for married couples in Washington involves considerations that don’t apply in most other states when you factor in its community property system and state-level estate tax, among other considerations. You’ll need an experienced Spokane trusts attorney on your side to help you navigate this complexity with confidence.
Look no further than Elevated Estate Planning, P.S. to help you by:
- Evaluating whether a marital trust is the right fit for your estate
- Explaining the differences between QTIP trusts, bypass trusts, and other marital trust structures
- Coordinating your state and federal estate tax strategies
- Drafting and funding the trust to ensure it works as intended
- Addressing blended family considerations, including provisions for children from prior marriages
- Reviewing and updating existing estate plans as laws and circumstances change
Call us today to schedule an initial consultation. Our Spokane estate planning lawyers are available to discuss your options.
What Is a Marital Trust?
A marital trust is a type of irrevocable trust created as part of a married couple’s estate plan. It is typically established upon the death of the first spouse and is designed to accomplish two main goals: providing for the surviving spouse during their lifetime and directing how the remaining assets are distributed after the surviving spouse passes away.
Some of the most common types of marital trusts include:
QTIP Trust
A Qualified Terminable Interest Property trust is one of the most widely used marital trusts, particularly for couples in blended families. The surviving spouse receives income from the trust during their lifetime, but the grantor controls who receives the remaining assets after the surviving spouse dies. This structure allows you to provide for your current spouse while ensuring that children from a prior relationship are ultimately taken care of.
General Power of Appointment Trust
A power of appointment marital trust gives the surviving spouse broad control over the trust assets, including the power to direct how they are distributed. It qualifies for the unlimited marital deduction but offers less control over where the assets end up after the surviving spouse’s death.
Bypass Trust (Credit Shelter Trust)
A bypass trust, also known as a credit shelter trust or an A/B trust, is designed to lock in the deceased spouse’s estate tax exemption. Assets placed in this trust are removed from the surviving spouse’s taxable estate, which can result in significant tax savings. This is important in Washington State, where the estate tax exemption is not portable between spouses.
Who Should Consider a Marital Trust in Spokane, WA?
Marital trusts are not reserved exclusively for the ultra-wealthy. Any married couple with assets approaching or exceeding Washington’s estate tax threshold should at least explore the option. Given how quickly things like home values can grow, many Spokane families find themselves closer to that line than they originally expected.
Marital trusts are particularly worth considering if:
- You and your spouse have combined assets approaching or exceeding $3 million
- Either spouse has children from a previous relationship
- You want to ensure your surviving spouse is financially taken care of without giving up control over where your assets ultimately go
- You own assets that could push your estate above the exemption threshold
- You want to protect assets from potential creditors and/or a future remarriage
Every family’s situation is different at the end of the day. As a result, the right trust structure for your estate will ultimately come down to a number of factors specific to your case. Our marital trust attorneys in Spokane can help you sort through those details.
Schedule a Consultation With a Spokane Marital Trust Attorney
Estate planning for married couples in Spokane, Washington, requires careful attention to both state and federal tax rules. A marital trust can be a powerful tool for protecting your family’s financial future, but only if it is structured and funded correctly.
Elevated Estate Planning, P.S., has 25 years of combined experience helping Washington State families build plans that work. Contact our Spokane marital trust lawyers today to schedule a consultation and learn more.