Marital Property

How does marital property affect trust management and distribution during estate planning?

Marital property plays a significant role in trust management and asset distribution during estate planning. When creating a trust, spouses often deal with assets that are considered marital property, meaning they are jointly owned. This can affect how assets are transferred or divided in an estate plan. For instance, in community property states, half of the marital property is typically owned by each spouse, which influences how these assets are handled in a trust. Determining the characterization of property as marital or separate can help guide decisions about asset inclusion and distribution in the trust, ensuring that the estate plan reflects the couple's intentions regarding their joint and individual properties.