Certain legal issues regarding the use of a revocable living trust have not been answered under Missouri law. For instance, it is not clear whether an individual can disinherit his or her spouse by transferring all assets into a revocable living trust. Also, while a divorce automatically disqualifies a divorced spouse under a will that was signed prior to the divorce, the same may not be true with a trust.
A revocable living trust may not be appropriate for certain assets. If stock is owned in a subchapter S corporation, the trust must comply with certain technical income tax requirements to avoid terminating the subchapter S status. Also, if the trust is named as the primary beneficiary of a qualified pension or retirement plan, or an IRA account, a surviving spouse will be precluded from completing a spousal rollover and deferring the income tax until later.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified estate planning lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local estate planning attorney to discuss your specific legal situation.