About the Course
Introduction
This CLE/CPE course will provide estate planners with a thorough and practical guide to overcoming the challenges of utilizing joint and individual trusts in separate property/community property states. The panel will outline when to use joint marital trusts instead of individual trusts and vice versa. The panel will offer drafting language to maximize the benefits and minimize the risks of using JMTs and individual trusts in separate and community property states.
Description
For some families, choosing between a joint or individual trust is a critical component that significantly impacts gift and income taxes. If both spouses want the surviving spouse to have full control over the assets in the trust and have the same beneficiaries of the residual estate, then a joint trust may be ideal. Individual trusts may be the best option for couples with certain assets, separate finances, prenuptial agreements, or second marriages. Estate planners must carefully consider applicable state laws and potential tax implications when deciding on the best structure.
Estate planning counsel should anticipate and avoid tax pitfalls when structuring joint trusts in separate property states. Where the spouses contribute unequal amounts, funding the trust may trigger gift tax if the trust instrument does not correctly assign the power to revoke or withdraw assets.
There are also income tax risks in structuring a joint trust in a separate property state. Estate planning counsel must identify hidden tax risks and manage them by carefully drafting the trust document.
Listen as our experienced panel explains how to structure joint and individual trusts in a separate property and community property state.
Presented By
Mr. Hemenway is a founding partner of Bivins & Hemenway, P.A. His educational background included substantial coursework in computer programming and systems design at both the undergraduate and graduate levels. Mr. Hemenway serves as a trusted legal advisor to business owners, real estate investors, and families seeking to preserve and pass down their wealth and values. His practice focuses on estate planning and probate, small and closely held businesses, and real estate.
Mr. McKenzie founded The McKenzie Law Firm, LLC in 2013, following 10 years of work as a trial lawyer. He specializes in estate planning along with estate administration, and small business counsel. Mr. McKenzie is a product of the Big Ten, having gotten his undergraduate degree from the University of Michigan (1997, with high honors) and his juris doctorate from Northwestern University School of Law (2003). In addition to Colorado, he is licensed to practice law in Illinois.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, July 16, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Community property states
A. Tax and non-tax considerations
B. Gift and estate tax issues to avoid in funding and administering
C. Income tax issues and potential advantages
D. Drafting recommendations and resources
II. Separate property states
A. Tax and non-tax considerations
B. Gift and estate tax issues to avoid in funding and administering
C. Income tax issues and potential advantages
D. Drafting recommendations and resources
III. Transitioning from community to separate property states and vice versa
A. Navigating state law issues
B. Tax and non-tax considerations
C. Gift and estate tax issues
D. Income tax issues and potential advantages
E. Drafting recommendations
The panel will review these and other key issues:
- What are the gift, income, and estate tax risks of utilizing joint vs. individual trusts in separate and community property states?
- What are the administrative and accounting costs associated with the use of joint trusts in separate property states?
- Coordinating joint revocable trusts with credit shelter trusts
- Drafting general powers of appointment in joint revocable trusts in separate property states
