An A-B trust is a revocable living trust which divides into two trusts upon the death of the first spouse. This type of trust makes use of both the estate tax exemption ($3.5 million per person in 2009) and the marital deduction to make it so that no estate taxes are due upon the death of the first spouse. The B Trust is also known as the Bypass trust and it contains the amount of that years applicable exclusion amount. The A trust is the marital deduction trust which will typically contain both the surviving spouse's separate property and one half community property interests but also the residue of the deceased spouse's estate after the estate tax exemption has been utilized by the B trust. The use of an A-B trust ensures that both spouse's applicable exclusion amounts are effectively used, thereby doubling the amount of property which can pass to heirs free of Federal Estate Taxes.
A Broward Florida Marital Deduction Trust is a legal tool utilized in estate planning to minimize tax liabilities for married couples, particularly in Broward County, Florida. This trust provides the surviving spouse with income from the trust's assets while ensuring that the principal goes to the beneficiaries upon their passing. Additionally, it aims to take advantage of the marital deduction, which permits the transfer of assets between spouses without incurring estate or gift taxes. Trust A, also known as the Marital Deduction Trust, is established in conjunction with the first spouse's passing. It holds the assets that are eligible for the marital deduction, often including real estate, investments, and cash, ensuring that they are not subject to estate taxes at this initial stage. The trust grants the surviving spouse the right to income generated by these assets, offering a level of financial security. Trust B, often referred to as the Bypass Trust or the Family Trust, is created alongside Trust A. It holds the remaining assets that are not eligible for the marital deduction, thereby utilizing the estate tax exemption of the first spouse who passed away. By doing so, this trust capitalizes on the first spouse's exemption amount and minimizes the overall estate tax liability. The Bypass Trust typically provides income and distributions to the surviving spouse, but the principal ultimately passes on to the beneficiaries upon their passing, without incurring additional estate tax. There are variations of Trust A and Trust B used in Broward Florida Marital Deduction Trusts, such as the Qualified Terminable Interest Property (TIP) Trust. This type of trust allows the first spouse to control the ultimate distribution of assets, ensuring that they pass to specific beneficiaries upon the surviving spouse's passing while still taking advantage of the marital deduction. In summary, a Broward Florida Marital Deduction Trust, consisting of Trust A and Trust B (or variations like the TIP Trust), is a comprehensive estate planning strategy designed to minimize estate taxes for married couples residing in Broward County, Florida. This trust structure strategically utilizes the marital deduction and estate tax exemptions to provide financial security to the surviving spouse while preserving the principal for the beneficiaries.A Broward Florida Marital Deduction Trust is a legal tool utilized in estate planning to minimize tax liabilities for married couples, particularly in Broward County, Florida. This trust provides the surviving spouse with income from the trust's assets while ensuring that the principal goes to the beneficiaries upon their passing. Additionally, it aims to take advantage of the marital deduction, which permits the transfer of assets between spouses without incurring estate or gift taxes. Trust A, also known as the Marital Deduction Trust, is established in conjunction with the first spouse's passing. It holds the assets that are eligible for the marital deduction, often including real estate, investments, and cash, ensuring that they are not subject to estate taxes at this initial stage. The trust grants the surviving spouse the right to income generated by these assets, offering a level of financial security. Trust B, often referred to as the Bypass Trust or the Family Trust, is created alongside Trust A. It holds the remaining assets that are not eligible for the marital deduction, thereby utilizing the estate tax exemption of the first spouse who passed away. By doing so, this trust capitalizes on the first spouse's exemption amount and minimizes the overall estate tax liability. The Bypass Trust typically provides income and distributions to the surviving spouse, but the principal ultimately passes on to the beneficiaries upon their passing, without incurring additional estate tax. There are variations of Trust A and Trust B used in Broward Florida Marital Deduction Trusts, such as the Qualified Terminable Interest Property (TIP) Trust. This type of trust allows the first spouse to control the ultimate distribution of assets, ensuring that they pass to specific beneficiaries upon the surviving spouse's passing while still taking advantage of the marital deduction. In summary, a Broward Florida Marital Deduction Trust, consisting of Trust A and Trust B (or variations like the TIP Trust), is a comprehensive estate planning strategy designed to minimize estate taxes for married couples residing in Broward County, Florida. This trust structure strategically utilizes the marital deduction and estate tax exemptions to provide financial security to the surviving spouse while preserving the principal for the beneficiaries.
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.
