[This is not available on its own. It must be purchased WITH another Trust Package.]

When a blended couple wants to create three trusts—one for each spouse individually and one joint trust—it often reflects a desire to balance their estate planning goals: ensuring individual control over separate assets while fostering shared decision-making over jointly held or mutually designated assets. Here’s an overview of the setup and benefits:

The Three-Trust Structure

1. Individual Trusts for Each Spouse:

   • Each spouse establishes a trust for their separately owned assets (e.g., inheritance, premarital savings, or personal investments).

   • These trusts allow each spouse to maintain control over how their individual assets are managed, distributed, and passed to their respective children or other beneficiaries.

   • Protects assets from the potential influence of the other spouse’s creditors or legal issues.

2. Joint Trust:

   • A joint trust is established for assets acquired during the marriage or for assets both spouses wish to manage and distribute jointly.

   • This trust typically governs shared property, such as the family home or joint investments, and allows for efficient management of marital assets.

   • Ensures a streamlined process for handling shared assets in case of incapacity or death of one spouse.

Why This Structure is a Good Idea

• Fairness and Autonomy: Each spouse retains control over their separate assets, ensuring their wishes for their respective children or heirs are honored.

• Streamlined Asset Management: The joint trust facilitates unified decision-making and simplifies the administration of shared assets during life or after the first spouse’s passing.

• Tax Efficiency: Properly structured trusts can optimize estate and gift tax implications, particularly when large estates are involved.

• Asset Protection: Trusts offer protection from creditors, lawsuits, and other potential risks.

• Avoiding Probate: Assets placed in these trusts pass directly to beneficiaries, bypassing the often lengthy and costly probate process.

How It’s Set Up

1. Drafting Trust Agreements:

   • An attorney drafts separate revocable trusts for each spouse and one joint trust, customizing terms to reflect the couple’s goals and circumstances.

2. Asset Allocation:

   • Each spouse identifies which assets belong to their individual trust, which assets go into the joint trust, and how to allocate income or gains.

3. Successor Trustees:

   • The couple appoints trustees for each trust, often serving as co-trustees for the joint trust and naming successors to manage the trusts after their deaths or incapacitation.

4. Funding the Trusts:

   • Assets are retitled or transferred into the respective trusts, ensuring the trusts are legally recognized and functional.

5. Integration with Estate Plan:

   • The trusts are aligned with other estate planning documents, such as wills, healthcare directives, and powers of attorney.

This structure ensures the couple’s estate plan reflects their unique blended family dynamic, balancing individual and joint priorities while providing clarity, control, and peace of mind for the future.