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.
Description: A Brownsville 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 that outlines the wishes and distribution of assets for a married person residing in Brownsville, Texas, who has children. This type of will is specifically designed to protect the financial security of both the spouse and the children, ensuring a fair and efficient distribution of assets. The main purpose of this will is to establish a Credit Shelter Trust for the spouse and a Trust for the children, also known as a Marital Trust. These trusts offer numerous advantages and tax benefits, which can help maximize the estate's value for the benefit of the surviving spouse and children. In a Brownsville Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, the key assets, such as property, investments, and personal belongings, are allocated primarily to the Credit Shelter Trust. This trust provides the surviving spouse with financial support and security during their lifetime while maintaining the necessary safeguards to ensure the remainder of the estate passes on to the children after the spouse's death. Simultaneously, a Trust for Children, which can be further divided into separate trusts for each child if desired, is created that holds specific assets and investments. These assets are intended for the benefit of the children, providing financial support for their education, healthcare, and general welfare. The Trust for Children is typically administered by a trustee until the children reach a specified age or achieve certain milestones, as determined by the creator of the will. By utilizing a Brownsville Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, individuals can ensure that their estate is protected, assets are distributed as intended, and loved ones are provided for in the most tax-efficient manner possible. Different types or variations of this will may include: 1. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and Equal Trust for Children — Marital Trust: This variation distributes the assets equally among the children rather than creating separate trusts for each child. 2. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Supplemental Needs Trust for a Special Needs Child — Marital Trust: This type of will includes provisions for a special needs child, addressing the unique financial considerations and care requirements that come with such circumstances. 3. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Charitable Remainder Trust for a Charitable Organization — Marital Trust: This variation allows the creator of the will to allocate a portion of their assets to a designated charitable organization through a Charitable Remainder Trust while also providing for the spouse and children. Remember, it is essential to consult with a qualified estate planning attorney to create a personalized Brownsville 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 that aligns with your specific needs and goals.Description: A Brownsville 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 that outlines the wishes and distribution of assets for a married person residing in Brownsville, Texas, who has children. This type of will is specifically designed to protect the financial security of both the spouse and the children, ensuring a fair and efficient distribution of assets. The main purpose of this will is to establish a Credit Shelter Trust for the spouse and a Trust for the children, also known as a Marital Trust. These trusts offer numerous advantages and tax benefits, which can help maximize the estate's value for the benefit of the surviving spouse and children. In a Brownsville Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, the key assets, such as property, investments, and personal belongings, are allocated primarily to the Credit Shelter Trust. This trust provides the surviving spouse with financial support and security during their lifetime while maintaining the necessary safeguards to ensure the remainder of the estate passes on to the children after the spouse's death. Simultaneously, a Trust for Children, which can be further divided into separate trusts for each child if desired, is created that holds specific assets and investments. These assets are intended for the benefit of the children, providing financial support for their education, healthcare, and general welfare. The Trust for Children is typically administered by a trustee until the children reach a specified age or achieve certain milestones, as determined by the creator of the will. By utilizing a Brownsville Married Person's Will with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, individuals can ensure that their estate is protected, assets are distributed as intended, and loved ones are provided for in the most tax-efficient manner possible. Different types or variations of this will may include: 1. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and Equal Trust for Children — Marital Trust: This variation distributes the assets equally among the children rather than creating separate trusts for each child. 2. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Supplemental Needs Trust for a Special Needs Child — Marital Trust: This type of will includes provisions for a special needs child, addressing the unique financial considerations and care requirements that come with such circumstances. 3. Brownsville Married Person's Will for the State of Texas with Children With a Credit Shelter Trust for Spouse and a Charitable Remainder Trust for a Charitable Organization — Marital Trust: This variation allows the creator of the will to allocate a portion of their assets to a designated charitable organization through a Charitable Remainder Trust while also providing for the spouse and children. Remember, it is essential to consult with a qualified estate planning attorney to create a personalized Brownsville 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 that aligns with your specific needs and goals.
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.
