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 Contra Costa California Marital Deduction Trust is a specialized estate planning tool that allows married couples to protect their assets and provide for each other after one spouse dies. This trust efficiently utilizes the marital deduction, a tax benefit that allows an unlimited transfer of assets between spouses without incurring estate tax. Trust A, also known as the Marital Deduction Trust, is established to hold the assets of the deceased spouse. This trust ensures that the surviving spouse receives the maximum benefit from the marital deduction, as the assets placed in Trust A qualify for the unlimited transfer without estate tax. Bypass Trust B, also referred to as the Family Trust or Credit Shelter Trust, is created alongside Trust A to maximize tax efficiency and asset protection. This trust holds a portion of the assets, often up to the estate tax exemption limit, which is excluded from the surviving spouse's estate. By bypassing the surviving spouse's estate, the assets in Trust B may appreciate outside the estate tax system. This trust also ensures that the estate tax exemption of the deceased spouse is fully utilized. Through the establishment of a Contra Costa California Marital Deduction Trust — Trust A and Bypass Trust B, married couples can optimize their estate plans, minimize estate taxes, protect assets for future generations, and provide for the surviving spouse. Overall, these trusts provide peace of mind and financial security for the family's legacy. Keywords: Contra Costa California, Marital Deduction Trust, Trust A, Bypass Trust B, estate planning, tax benefits, assets, estate tax, unlimited transfer, surviving spouse, tax efficiency, asset protection, family trust, credit shelter trust, estate tax exemption, minimize taxes, future generations, financial security, peace of mind.A Contra Costa California Marital Deduction Trust is a specialized estate planning tool that allows married couples to protect their assets and provide for each other after one spouse dies. This trust efficiently utilizes the marital deduction, a tax benefit that allows an unlimited transfer of assets between spouses without incurring estate tax. Trust A, also known as the Marital Deduction Trust, is established to hold the assets of the deceased spouse. This trust ensures that the surviving spouse receives the maximum benefit from the marital deduction, as the assets placed in Trust A qualify for the unlimited transfer without estate tax. Bypass Trust B, also referred to as the Family Trust or Credit Shelter Trust, is created alongside Trust A to maximize tax efficiency and asset protection. This trust holds a portion of the assets, often up to the estate tax exemption limit, which is excluded from the surviving spouse's estate. By bypassing the surviving spouse's estate, the assets in Trust B may appreciate outside the estate tax system. This trust also ensures that the estate tax exemption of the deceased spouse is fully utilized. Through the establishment of a Contra Costa California Marital Deduction Trust — Trust A and Bypass Trust B, married couples can optimize their estate plans, minimize estate taxes, protect assets for future generations, and provide for the surviving spouse. Overall, these trusts provide peace of mind and financial security for the family's legacy. Keywords: Contra Costa California, Marital Deduction Trust, Trust A, Bypass Trust B, estate planning, tax benefits, assets, estate tax, unlimited transfer, surviving spouse, tax efficiency, asset protection, family trust, credit shelter trust, estate tax exemption, minimize taxes, future generations, financial security, peace of mind.
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.
