Can I set up a trust without my spouse?

Yes, you can establish a trust without your spouse. A trust is an arrangement by which you, the creator or settlor of the trust, transfer certain assets to the trustee to hold and manage for the benefit of persons named in the trust. You can, therefore, create a trust without the participation of your spouse. Key things to know:

1. Individual Trust Ownership

• You can create a trust in your own name by designating anyone you wish as the trustee and beneficiaries. These can include you yourself, your children, other relatives, or even a charity.
• You can, if you wish, make your spouse aware of it, but you are not required by law to do so.

2. Privacy:

Such a trust structure could protect the confidentiality of those certain assets or financial arrangements not subject to the involvement of your spouse. This may be very important in many areas, such as prenuptial agreements, personal investment considerations, or individual estate planning reasons.

3. Asset Control

• When you create an independent trust, there is no intrusion into the terms and conditions that you determine for the management of the trust assets and the distribution process.
• You can involve or exclude your spouse as a beneficiary or trustee, whatever suits your purpose.

4. Juridical and Financial Counseling

• You can also consult with an attorney or a financial advisor who has experience with estate planning or trusts to make sure the trust is drafted appropriate to your purposes.
• Legal advice will guide the person through any possible future implications or requirements, such as taxation or state law issues.

5. Effects on Marital Property

• In case the property transferred in the trust is considered marital property, some effect may be realized in the case of divorce or separation. It is very vital to know how the local law treats the assets placed in trust, more so if marital property laws apply.
• That does not mean all those assets you set up in a trust without your spouse's knowledge are completely safe from being taken into account in the marriage break up.

6. Special Situations

• Blended Families: You can establish a separate trust, which will be designed to make provisions for assets distribution to children from a previous marriage.
• Asset Protection: In some cases, having a trust established without your spouse can ensure that such assets are better shielded from possible creditors.
• Charitable Giving: You may want to create a charitable trust that is not controlled or governed by your spouse.

7. Future Amendments:

You typically can amend, or modify, a revocable trust—a trust that can be changed or dissolved—without the involvement of your spouse unless specific terms or co-trustee conditions are imposed on its creation.

In summary, it is possible to establish a trust without involving your spouse. However, it’s important to carefully evaluate the potential legal, financial, and relational impacts. Seeking professional advice can provide peace of mind and ensure you make informed decisions tailored to your specific circumstances. At One Pacific Trust, we are committed to being the leading provider of trust services, offering expert guidance and support every step of the way.