The phrase "credit shelter trust" trust refers to a trust that is designed to make maximum use of the unified credit for estate taxes -- which is also known as the lifetime exemption. Each individual is allowed a once-in-a-lifetime exemption from estate and gift taxes. However, the exemption is computed as a credit against the estate and gift tax that is sufficient to offset the tax on an estate of a specified size. A credit shelter trust is designed to make maximum use of the unified credit for estate taxes. Each individual is allowed a once-in-a-lifetime credit from estate and gift taxes. For 2009 the exempt amount is 3.5 million. By the year 2010 the inheritance tax is eliminated but if congress does not make the elimination permanent in the following year the tax will return and the exempt amount will be $1.0 million. Since it is any one's guess what congress will do, planning to maximize the credit is still the smartest estate plan for married couples to utilize.
The parties must split there assets so that roughly 1/2 half of the assets are held by Spouse One and 1/2 of the assets are held by Spouse Two. Each spouse then provides by will or living trust that upon their death the amount of their assets up to the exemption amount are to be held in a trust known as the credit shelter trust. The trust typically provides that the surviving spouse has entitlement to the income and to the principal provided that there are "ascertainable standards" established in accordance with IRS law for the trustee to distribute principal to the surviving spouse.
When the first spouse dies the credit shelter trust is exempt from tax. When the surviving spouse dies the surviving spouse's estate up to the exempt amount is also exempt from tax. This way the parties can exempt twice as much of their combined estates from taxation and save their loved ones substantial tax savings without losing beneficial use and enjoyment of their assets during their lifetimes.
The Bexar Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust is a legal document designed to address the distribution of assets and provide financial security for both the surviving spouse and children in the event of the testator's death. This particular type of will is recognized and applicable in Bexar County, Texas. The primary purpose of a Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust is to ensure that the surviving spouse receives adequate support and resources while preserving assets for the benefit of the children. The content of this will consists of various provisions and clauses, which can be tailored to meet specific needs and circumstances. Keywords: Bexar County, Texas, married person's will, children, credit shelter trust, spouse, marital trust, legal document, distribution of assets, financial security, surviving spouse, death. Different types or variations of the Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust may include: 1. Simple Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children: This version of the will includes basic provisions to establish the trust for the children and the credit shelter trust for the surviving spouse. 2. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Special Needs Trust: For families with a child or children with special needs, this type of will incorporates additional provisions to address their unique requirements and ensure they receive appropriate care and support. 3. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Blended Family Trust: Designed for families where one or both spouses have children from previous relationships, this will include provisions to address the equitable distribution of assets among the children from different marriages. 4. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Testamentary Trust: This type of will establishes a testamentary trust, meaning that the trust is created upon the testator's death, to provide guidance on the management and distribution of assets to the surviving spouse and children. Remember, it is crucial to consult with an attorney to ensure the correct drafting and execution of a Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, as the specific requirements and nuances may vary based on individual circumstances and applicable laws in Bexar County, Texas.The Bexar Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust is a legal document designed to address the distribution of assets and provide financial security for both the surviving spouse and children in the event of the testator's death. This particular type of will is recognized and applicable in Bexar County, Texas. The primary purpose of a Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust is to ensure that the surviving spouse receives adequate support and resources while preserving assets for the benefit of the children. The content of this will consists of various provisions and clauses, which can be tailored to meet specific needs and circumstances. Keywords: Bexar County, Texas, married person's will, children, credit shelter trust, spouse, marital trust, legal document, distribution of assets, financial security, surviving spouse, death. Different types or variations of the Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust may include: 1. Simple Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children: This version of the will includes basic provisions to establish the trust for the children and the credit shelter trust for the surviving spouse. 2. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Special Needs Trust: For families with a child or children with special needs, this type of will incorporates additional provisions to address their unique requirements and ensure they receive appropriate care and support. 3. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Blended Family Trust: Designed for families where one or both spouses have children from previous relationships, this will include provisions to address the equitable distribution of assets among the children from different marriages. 4. Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Testamentary Trust: This type of will establishes a testamentary trust, meaning that the trust is created upon the testator's death, to provide guidance on the management and distribution of assets to the surviving spouse and children. Remember, it is crucial to consult with an attorney to ensure the correct drafting and execution of a Bexar Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, as the specific requirements and nuances may vary based on individual circumstances and applicable laws in Bexar County, Texas.
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.
