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.
A Tarrant Married Person's Will for the State of Texas with Children and Credit Shelter Trust for Spouse and Trust for Children — Marital Trust is a specific type of will designed for married individuals residing in Tarrant County, Texas who wish to protect and provide for their spouse and children in the event of their passing. This will structure includes various types of trusts carefully crafted to ensure the financial security of the surviving spouse and the future well-being of the children. Keywords: Tarrant Married Person's Will, State of Texas, Children, Credit Shelter Trust, Trust for Spouse, Trust for Children, Marital Trust, Tarrant County, financial security, well-being, passing, protect, provide, surviving spouse, future. Different variations of Tarrant 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 can include: 1. Tarrant Married Person's Will with a Revocable Credit Shelter Trust for Spouse and a Trust for Children: This type of will allows the person to create a trust that provides significant advantages, including reducing estate taxes and protecting assets. The trust is revocable, meaning the person can make changes as needed during their lifetime. 2. Tarrant Married Person's Will with an Irrevocable Credit Shelter Trust for Spouse and a Trust for Children: In this version, the person sets up an irrevocable trust that offers the same benefits as a revocable trust but with added asset protection and potential tax advantages. Once this type of trust is established, it typically cannot be modified. 3. Tarrant Married Person's Will with a Testamentary Credit Shelter Trust for Spouse and a Trust for Children: This will structure includes a trust that is established upon the death of the person. The assets are transferred to the trust after probate, ensuring the surviving spouse and children receive the intended financial support and protection. 4. Tarrant Married Person's Will with a Lifetime Credit Shelter Trust for Spouse and a Trust for Children: This type of will establishes a trust during the person's lifetime and transfers assets to it. The surviving spouse receives income from the trust, and the children are entitled to the remaining assets after the spouse's passing. 5. Tarrant Married Person's Will with a Qualified Terminable Interest Property (TIP) Trust for Spouse and a Trust for Children: This variation allows the person to provide for their spouse while ensuring that any remaining assets eventually pass to the children. The spouse receives income from the trust, and the assets are preserved for the children's future benefit. By utilizing one of these Tarrant Married Person's Will options with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, individuals in Tarrant County, Texas can customize their estate plans to best suit their specific family dynamics, financial goals, and desired distributions, ensuring the protection and prosperity of their loved ones.A Tarrant Married Person's Will for the State of Texas with Children and Credit Shelter Trust for Spouse and Trust for Children — Marital Trust is a specific type of will designed for married individuals residing in Tarrant County, Texas who wish to protect and provide for their spouse and children in the event of their passing. This will structure includes various types of trusts carefully crafted to ensure the financial security of the surviving spouse and the future well-being of the children. Keywords: Tarrant Married Person's Will, State of Texas, Children, Credit Shelter Trust, Trust for Spouse, Trust for Children, Marital Trust, Tarrant County, financial security, well-being, passing, protect, provide, surviving spouse, future. Different variations of Tarrant 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 can include: 1. Tarrant Married Person's Will with a Revocable Credit Shelter Trust for Spouse and a Trust for Children: This type of will allows the person to create a trust that provides significant advantages, including reducing estate taxes and protecting assets. The trust is revocable, meaning the person can make changes as needed during their lifetime. 2. Tarrant Married Person's Will with an Irrevocable Credit Shelter Trust for Spouse and a Trust for Children: In this version, the person sets up an irrevocable trust that offers the same benefits as a revocable trust but with added asset protection and potential tax advantages. Once this type of trust is established, it typically cannot be modified. 3. Tarrant Married Person's Will with a Testamentary Credit Shelter Trust for Spouse and a Trust for Children: This will structure includes a trust that is established upon the death of the person. The assets are transferred to the trust after probate, ensuring the surviving spouse and children receive the intended financial support and protection. 4. Tarrant Married Person's Will with a Lifetime Credit Shelter Trust for Spouse and a Trust for Children: This type of will establishes a trust during the person's lifetime and transfers assets to it. The surviving spouse receives income from the trust, and the children are entitled to the remaining assets after the spouse's passing. 5. Tarrant Married Person's Will with a Qualified Terminable Interest Property (TIP) Trust for Spouse and a Trust for Children: This variation allows the person to provide for their spouse while ensuring that any remaining assets eventually pass to the children. The spouse receives income from the trust, and the assets are preserved for the children's future benefit. By utilizing one of these Tarrant Married Person's Will options with a Credit Shelter Trust for Spouse and a Trust for Children — Marital Trust, individuals in Tarrant County, Texas can customize their estate plans to best suit their specific family dynamics, financial goals, and desired distributions, ensuring the protection and prosperity of their loved ones.
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.
