Estate planning can feel overwhelming especially for unmarried individuals who wish to create a plan that protects their assets and honors their wishes. Whether you are in a committed relationship, part of a blended family, or planning with a sibling, you may be wondering if a joint trust is the right choice. While joint trusts can be useful in some cases, they also come with serious risks that should be carefully considered.

Understanding the Tax Implications

Married couples benefit from the unlimited marital deduction which allows them to transfer assets to each other without incurring gift or estate taxes (Internal Revenue Code §§ 2523, 2056). Unmarried individuals do not receive this same benefit under federal law (1 U.S.C. § 7(a)).

If one trustmaker contributes more to the trust than the other, that excess may be treated as a taxable gift. Although the annual exclusion amount (19,000 dollars in 2025) may offer some relief, larger contributions can lead to gift tax obligations unless handled properly (IRS, 2024).

Administrative Complications After Death

When one trustmaker passes away, the trust may become irrevocable as it pertains to that individual’s share. The surviving trustmaker often retains broad powers which may allow them to redirect or alter distributions. This flexibility can unintentionally override the deceased individual’s original estate plan.

As the Uniform Trust Code warns, joint trusts are often poorly drafted and can result in confusion and unintended consequences, particularly in states that do not follow community property laws (Merk, 1997).

A Safer Strategy for Unmarried Individuals

Many estate planning professionals recommend creating three trusts instead of one. This approach includes a joint pour-over trust for shared property and two separate trusts, one for each person. This structure provides better protection, clear boundaries, and peace of mind knowing that each trustmaker’s wishes will be honored.

Plan with Confidence

If you are an unmarried individual or couple considering a joint trust, we encourage you to speak with an experienced estate planning attorney. At Enoch Tarver, we help clients build thoughtful, effective plans tailored to their unique situations.

Contact our team today to schedule a consultation and take the next step toward securing your legacy.

References

• Internal Revenue Code §§ 2523, 2056.
• IRS. (2024). Instructions for Form 709 (2024). https://www.irs.gov/forms-pubs/about-form-709
• Merk, M. S. (1997). Joint revocable trusts for married couples domiciled in common-law property states. Real Property, Probate and Trust Journal, 32(2), 345–372.
• Uniform Trust Code § 602 comment. 1 U.S.C. § 7(a).