Community Property Trust Knoxville, TN

When devising your estate plan, we may suggest creating a Knoxville, TN community property trust that combines you and your spouse’s property into a joint trust. Community property consists of assets that are acquired during the marriage through means other than a gift or inheritance. Assets that get acquired by the couple, no matter how those assets are titled, are seen as assets of the marital community. Not all states recognize community property, but the state of Tennessee does. Here our team at Carpenter & Lewis PLLC have gone into further detail about the benefits of having a community property trust. Contact us today if you would like individualized guidance! 

How We Protect Your Property

There are many benefits of having a community property trust. These trusts ensure that each spouse has equal interest ownership for the assets within. This can make property management and decision-making simplified during the marriage. If one spouse passes away, the assets in the trust can be sold by the surviving spouse with little or no capital gains tax liability. Furthermore, assets held within the trust have more protection from creditors. They are treated as shared property and usually not subjected to individual creditor claims. Compared to traditional revocable living trusts, community property trusts help assets  get distributed to beneficiaries outside of the probate process. This saves ample time and expenses. 

We Can Help Avoid Capital Gains Tax

A community property trust is a great way to avoid capital gains tax. These trusts can save you thousands of dollars in taxes if they are set up properly and funded. It may make more sense to use this type of trust compared to a basic revocable trust. If you are thinking about creating a Knoxville community property trust, we suggest contacting our team so we can walk you through the pros and cons, making sure it is the correct fit for your needs, preferences, and goals. 

Creating A Community Property Trust

To establish a community property trust, spouses are encouraged to work with a lawyer who is experienced in estate planning and Tennessee laws. The steps involved with creating a community property trust include drafting the agreement, transferring assets, maintaining separate property, and regularly reviewing the documentation. Not all assets have to be placed into this trust. Each spouse can still have their own separate property, as only certain assets can be designated as shared within the trust. Estate plans should be reviewed periodically to make sure they still align with current financial standings and goals. Adjustments can be made as life circumstances change. 

Carpenter & Lewis PLLC

At Carpenter & Lewis PLLC, we seek to provide our clients with the highest-quality legal advice. We are known for our insight into estate planning, trusts, wills, and small businesses. Our firm was founded in 1989 by Stephen L. Carpenter, and stands out by focusing on estate and transactional law, offering useful strategies that are tailored to individuals, businesses, and spousal joint properties. If you are interested in creating a Knoxville community property trust or other estate planning tool, we are ready to assist you! Contact us today for a consultation.