Living Trust Vs Will In Virginia

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.

Living trust vs will in virginia.

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. A living trust at least theoretically provides for a smoother transition of management and ownership of property. Other situations in virginia inheritance law. This question is one that we receive all the time especially with services like legal zoom pushing do it yourself wills and other firms pressing the need for everyone to have an expensive trust in lieu of or in addition to a will.

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. 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. 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. Trusts cannot protect your assets from estate tax.

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. 11 million are exempt from estate taxes. 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.

A living trust won t protect any assets from estate taxes. Virginia does not have its own estate tax but federal estate taxes still apply in virginia. To be an heir under virginia intestate succession you must have outlived the decedent by at least 120 hours. 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.

You cannot do this with a will however you can also make a durable power of attorney to appoint someone to manage your finances. 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. Living trusts and estate taxes in virginia. Virginia beach law group is here to answer all the questions you have about estate planning.