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.
Fulton Georgia Marital Deduction Trust — Trust A and Bypass Trust B are two types of trusts commonly used in estate planning. These trusts are designed to optimize estate tax benefits for married couples while providing financial security for the surviving spouse. In a Fulton Georgia Marital Deduction Trust — Trust A, the assets of the deceased spouse are transferred into a trust for the benefit of the surviving spouse. The surviving spouse has access to income generated by the trust, and may also have limited access to the principal if needed for maintenance and support. This trust is known as the marital deduction trust because it takes advantage of the unlimited marital deduction, which allows the estate to pass to the surviving spouse tax-free. On the other hand, the Fulton Georgia Bypass Trust B, also known as the credit shelter trust or the A/B trust, is created alongside the Marital Deduction Trust. It is designed to minimize estate taxes upon the death of the surviving spouse. When the first spouse passes away, a portion of their assets equal to the estate tax exemption is transferred into the Bypass Trust B, which is not subject to estate taxes. The surviving spouse can benefit from any income generated by the trust but may have limited access to the principal. Upon the death of the surviving spouse, the assets in the Bypass Trust B pass to the designated beneficiaries, usually the children or other beneficiaries. These types of trusts are commonly used in Fulton Georgia and other states to maximize estate tax savings and provide for the long-term financial security of the surviving spouse. By strategically dividing assets between the Marital Deduction Trust — Trust A and Bypass Trust B, couples can reduce the overall estate tax liability while ensuring that the surviving spouse has sufficient financial resources. It is important to consult with an experienced estate planning attorney in Fulton Georgia to understand the specific requirements and benefits of these trusts. They can analyze your unique financial situation and goals to determine if a Fulton Georgia Marital Deduction Trust — Trust A and Bypass Trust B is the most appropriate strategy for your estate plan.Fulton Georgia Marital Deduction Trust — Trust A and Bypass Trust B are two types of trusts commonly used in estate planning. These trusts are designed to optimize estate tax benefits for married couples while providing financial security for the surviving spouse. In a Fulton Georgia Marital Deduction Trust — Trust A, the assets of the deceased spouse are transferred into a trust for the benefit of the surviving spouse. The surviving spouse has access to income generated by the trust, and may also have limited access to the principal if needed for maintenance and support. This trust is known as the marital deduction trust because it takes advantage of the unlimited marital deduction, which allows the estate to pass to the surviving spouse tax-free. On the other hand, the Fulton Georgia Bypass Trust B, also known as the credit shelter trust or the A/B trust, is created alongside the Marital Deduction Trust. It is designed to minimize estate taxes upon the death of the surviving spouse. When the first spouse passes away, a portion of their assets equal to the estate tax exemption is transferred into the Bypass Trust B, which is not subject to estate taxes. The surviving spouse can benefit from any income generated by the trust but may have limited access to the principal. Upon the death of the surviving spouse, the assets in the Bypass Trust B pass to the designated beneficiaries, usually the children or other beneficiaries. These types of trusts are commonly used in Fulton Georgia and other states to maximize estate tax savings and provide for the long-term financial security of the surviving spouse. By strategically dividing assets between the Marital Deduction Trust — Trust A and Bypass Trust B, couples can reduce the overall estate tax liability while ensuring that the surviving spouse has sufficient financial resources. It is important to consult with an experienced estate planning attorney in Fulton Georgia to understand the specific requirements and benefits of these trusts. They can analyze your unique financial situation and goals to determine if a Fulton Georgia Marital Deduction Trust — Trust A and Bypass Trust B is the most appropriate strategy for your estate plan.
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.
