An AB trust is a trust created by a married couple to avoid probate and minimize federal estate tax. An AB trust is created by each spouse placing property into a trust and naming someone other than his or her spouse as the final beneficiary of that trust. Upon the death of the first spouse, the surviving spouse does not own the assets in that spouse's trust outright, but has a limited power over the assets in accordance with the terms of the trust. Such powers may include the right to receive interest or income earned by the trust, to use the trust property during his or her lifetime, e.g. to live in a house, and/or to use the trust principal for his or her health, education, or support. Upon the death of the second spouse, the trust passes to the final beneficiary of the trust. For estate tax purposes, the trust is included in the first, but not the second, spouse's estate and therefore, avoids double taxation.
The Greensboro North Carolina Marital Deduction Trust, also known as Trust A, is a type of trust specifically designed to take advantage of the marital deduction within the federal estate tax laws. This trust allows a married couple to transfer assets between each other without incurring any federal estate tax. It is important to note that this trust is only applicable if the estate is subject to estate tax. Trust A, also known as the Marital Deduction Trust, allows the assets of the deceased spouse to be transferred to the trust upon their death. The surviving spouse becomes the beneficiary of the trust and has access to the income generated by the trust assets and, in some cases, the principal. The surviving spouse can also have the power to direct the disposition of the trust assets upon their death. Bypass Trust B, on the other hand, is another type of trust often used in conjunction with the Marital Deduction Trust. This trust, also known as the Credit Shelter Trust or the Family Trust, allows the deceased spouse to transfer a portion of their assets into the trust for the benefit of the surviving spouse and other beneficiaries such as children or grandchildren. The Bypass Trust B is designed to fully utilize the deceased spouse's estate tax exemption and shelter a portion of their assets from estate taxes. This trust allows the surviving spouse to have access to the income and, in some cases, the principal of the trust, while still ensuring that the remaining trust assets pass to the other beneficiaries free of any estate tax. It is important to consult with an estate planning attorney to determine the specific types and structures of Marital Deduction Trust A and Bypass Trust B that are suitable for individual circumstances in Greensboro, North Carolina. These trusts can vary in their terms and provisions, and professionals will ensure the trusts are drafted and funded properly to achieve desired estate planning goals while minimizing tax liabilities.The Greensboro North Carolina Marital Deduction Trust, also known as Trust A, is a type of trust specifically designed to take advantage of the marital deduction within the federal estate tax laws. This trust allows a married couple to transfer assets between each other without incurring any federal estate tax. It is important to note that this trust is only applicable if the estate is subject to estate tax. Trust A, also known as the Marital Deduction Trust, allows the assets of the deceased spouse to be transferred to the trust upon their death. The surviving spouse becomes the beneficiary of the trust and has access to the income generated by the trust assets and, in some cases, the principal. The surviving spouse can also have the power to direct the disposition of the trust assets upon their death. Bypass Trust B, on the other hand, is another type of trust often used in conjunction with the Marital Deduction Trust. This trust, also known as the Credit Shelter Trust or the Family Trust, allows the deceased spouse to transfer a portion of their assets into the trust for the benefit of the surviving spouse and other beneficiaries such as children or grandchildren. The Bypass Trust B is designed to fully utilize the deceased spouse's estate tax exemption and shelter a portion of their assets from estate taxes. This trust allows the surviving spouse to have access to the income and, in some cases, the principal of the trust, while still ensuring that the remaining trust assets pass to the other beneficiaries free of any estate tax. It is important to consult with an estate planning attorney to determine the specific types and structures of Marital Deduction Trust A and Bypass Trust B that are suitable for individual circumstances in Greensboro, North Carolina. These trusts can vary in their terms and provisions, and professionals will ensure the trusts are drafted and funded properly to achieve desired estate planning goals while minimizing tax liabilities.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
