Joint Trust vs. Separate Trusts: Which Is Best for Married Couples?

November 11, 2025
Rockland Estate Planning

Estate planning for married couples often begins with one important question: Should we create a joint trust or two separate trusts? The answer depends on your financial situation, state laws, and long-term goals. Understanding the pros and cons of each option can help you and your spouse make the right decision for your family’s future.

In this article, we’ll explain the key differences between joint trusts and separate trusts, when each makes sense, and how an estate planning attorney can help you choose the best structure for your needs.

What Is a Joint Trust?

A joint trust (sometimes called a family trust or shared revocable trust) is a single trust that holds assets owned by both spouses. Both partners act as co-trustees and typically have equal control over the trust during their lifetimes.

When one spouse passes away, the surviving spouse usually becomes the sole trustee and retains control over the trust assets.

Benefits of a Joint Trust

  • Simplified administration: One trust is easier to manage than two separate ones.

  • Unified control: Both spouses can make decisions together.

  • Streamlined estate settlement: After the first spouse’s death, the surviving spouse maintains access to all trust assets without needing to retitle or transfer property.

Potential Drawbacks

  • Less flexibility for separate goals: If spouses have different beneficiaries or estate plans (for example, in blended families), a joint trust can create complications.

  • Creditor or liability exposure: Shared ownership may expose all trust assets to certain claims or legal liabilities of one spouse.

  • Tax limitations in some states: Couples may miss out on tax planning advantages offered by individual trusts.

What Are Separate Trusts?

Separate trusts involve each spouse creating their own revocable living trust. Each spouse controls and manages their own assets and determines how they will be distributed after death.

Benefits of Separate Trusts

  • Individual control: Each spouse can direct how their assets are managed and distributed, which is especially important for blended families.

  • Asset protection: Keeps one spouse’s trust assets insulated from the liabilities or debts of the other.

  • Tax advantages: In states that have estate or inheritance tax, separate trusts can help reduce estate taxes by maximizing exemptions for each spouse.

  • Privacy: the details of each spouse’s trust is hidden from the other spouse’s beneficiaries.

Potential Drawbacks

  • More complex administration: Two trusts mean more paperwork, accounting, and management.

  • Potential for unequal access: If one spouse holds more assets, the other may have less flexibility during their lifetime.

  • Higher setup cost: Establishing two trusts can increase upfront legal and administrative costs.

When to Choose a Joint Trust

A joint trust may be best for you if:

  • Most of your assets are jointly owned.

  • You and your spouse share the same beneficiaries and estate goals.

  • You want a simple, unified estate plan with fewer administrative burdens.

When to Choose Separate Trusts

Consider separate trusts if:

  • You have significant individual assets or inheritances.

  • You’re part of a blended family or want different beneficiaries.

  • You want to maximize State estate tax benefits or shield assets from potential liabilities.

How an Estate Planning Attorney Can Help

Determining whether to create a joint trust or two separate trusts is a critical decision that can affect your family’s financial future. An experienced estate planning attorney can analyze your assets, state laws, and personal goals to design a trust strategy that meets your needs.

Your attorney can also ensure your trust documents, funding, and beneficiary designations are properly coordinated to avoid costly mistakes down the road.

Final Thoughts

Every couple’s situation is unique. While a joint trust can simplify estate management for couples with shared goals, separate trusts offer flexibility, protection, and tax benefits for others. Before making a decision, consult a qualified estate planning lawyer who understands your state’s trust laws and can tailor a plan that fits your family.

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