Living Trust Vs Will In Virginia

Trusts cannot protect your assets from estate tax.

Living trust vs will in virginia.

Virginia beach law group is here to answer all the questions you have about estate planning. If one owns real property in several states and or has serious privacy concerns about the will being recorded perhaps the living trust would work better. A trust can provide creditor protection for the inheritance you leave to beneficiaries a will cannot. An overview you can t take it with you when you go while this familiar statement is true you can and should do your best to control your assets from beyond the grave.

As a general rule for relatively simple virginia estates with no real property outside of virginia a will plan will almost always be more cost effective and efficient than a living trust plan. Virginia does not have its own estate tax but federal estate taxes still apply in virginia. 11 million are exempt from estate taxes. To be an heir under virginia intestate succession you must have outlived the decedent by at least 120 hours.

A living trust at least theoretically provides for a smoother transition of management and ownership of property. You cannot do this with a will however you can also make a durable power of attorney to appoint someone to manage your finances. While the state of virginia doesn t place an estate tax on estates it does have a federal estate tax that applies to any estate that is over 5 million dollars. However it doesn t offer the same benefits that trust will provide.

Beginning in 2018 and until at least 2025 as a result of the tax cuts and jobs act. Revocable trusts also referred to as living trusts or inter vivos trusts are established during the lifetime of the creator grantor of the trust rather than in a decedent s will. Living trusts and estate taxes in virginia. The grantor retains the right to amend or revoke the trust and is often a trustee and a beneficiary of the trust during his or her lifetime.

In a living trust you can name your spouse partner child or other trusted person to have authority over trust property if you become incapacitated and unable to manage your own affairs. A living trust won t protect any assets from estate taxes. A trust is an excellent probate avoidance tool because assets that are owned in the name of a trust are immediately accessible to the trust maker s designated successor. If you d like any of the above to be included in your estate or intestate succession in the absence of a will you can simply name your estate as the beneficiary.