Should Married Couples Have a Joint Trust or Separate Trusts?

If you and your spouse are putting together an estate plan, one of the first big questions you’ll face is this: Should we create a joint trust or separate trusts?

The answer isn’t the same for every couple. The right choice depends on your state’s laws, your assets, your tax situation, and your family dynamics. Below, we’ll break down the key differences, advantages, and situations where each option makes sense—so you can make an informed decision with confidence.

What Is a Joint Trust?

A joint trust is a single trust that both spouses create together. It holds the couple’s shared assets, and both partners typically act as co-trustees with equal authority. When one spouse passes away, the surviving spouse usually continues managing the trust without interruption.

Advantages of a Joint Trust

Easy to manage: There’s just one trust to maintain instead of two.
Streamlined transition: The surviving spouse automatically continues as trustee.
Unified control: Both spouses manage assets together and make decisions jointly.

Possible Drawbacks

Limited flexibility: If each spouse has different wishes for beneficiaries, a joint trust may complicate things.
Shared liability: If one spouse is sued or owes debts, the trust’s joint assets could be at risk.
Not always tax-efficient: In certain states, couples may lose estate tax advantages available with separate trusts.

What Are Separate Trusts?

In a separate trust setup, each spouse creates their own revocable living trust. Each person controls their individual trust and decides how their assets will be distributed after death.

Benefits of Separate Trusts

Individual control: Each spouse can choose their own trustees and beneficiaries.
Greater protection: Keeps one spouse’s assets separate from the other’s potential liabilities.
Tax planning opportunities: Can help maximize both spouses’ State estate or inheritance tax exemptions.
Ideal for blended families: Allows each spouse to leave assets to children or heirs from previous relationships.

Drawbacks to Consider

More administrative work: Managing two trusts means more documents, accounting, and updates.
Higher initial cost: Establishing two trusts can be more expensive upfront.
Potential imbalance: If one spouse holds most of the wealth, their partner may have less access to liquid assets during life.

When a Joint Trust Makes Sense

A joint trust may be the best fit if:

You and your spouse share most of your assets.
You and your spouse share the same beneficiaries and goals.
You prefer a simple, streamlined estate plan.

When Separate Trusts Are the Better Choice

Separate trusts may be the smarter option if:

You each own significant individual assets or inheritances.
You’re part of a blended family or have different beneficiaries.
You want to maximize estate tax savings or maintain separate control.

How an Estate Planning Attorney Can Help

Choosing between a joint trust and separate trusts isn’t just a paperwork decision—it’s a long-term strategy that affects how your estate is managed and distributed. An experienced estate planning attorney can evaluate your assets, family goals, and state laws to design a customized trust plan that protects your legacy and reduces potential taxes or legal issues.

Bottom Line

There’s no one-size-fits-all answer when it comes to joint vs. separate trusts for married couples. A joint trust can make things simpler, while separate trusts offer more flexibility and control. The right choice depends on your unique financial picture and family priorities.

Before deciding, talk with a qualified estate planning lawyer who can help you weigh the pros and cons for your situation and create a plan that gives you peace of mind.