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.
Hillsborough Florida Marital Deduction Trust, also known as Trust A, and Bypass Trust B, are estate planning tools used by residents of Hillsborough County, Florida. They are designed to minimize estate taxes and provide financial security for surviving spouses. Trust A, the Marital Deduction Trust, is established by a married couple to take advantage of the marital deduction offered by the Internal Revenue Service (IRS). This deduction allows the transfer of unlimited assets from one spouse to another, free of estate taxes, upon the first spouse's death. Trust A is funded with the assets of the deceased spouse and provides income and resources for the surviving spouse during their lifetime. Bypass Trust B, on the other hand, is established alongside Trust A and is aimed at maximizing estate tax savings. This trust is funded with an amount equal to the federal estate tax exclusion limit, which is the maximum amount that can be transferred free of estate taxes. Bypass Trust B is primarily designed to benefit the couple's children or other designated beneficiaries. There are a few different types of Hillsborough Florida Marital Deduction Trust — Trust A and Bypass Trust B, based on the specific goals and circumstances of the individual: 1. Qualified Terminable Interest Property (TIP) Trust: This type of Trust A provides the surviving spouse with income during their lifetime while maintaining control over asset distribution after their death. It allows the granter to ensure that the remaining assets pass to specific beneficiaries, such as children from a previous marriage. 2. Irrevocable Life Insurance Trust (IIT): This is a type of Bypass Trust B that holds the proceeds of a life insurance policy outside the insured's estate. It helps reduce the overall estate tax liability and ensures that the life insurance benefits are distributed according to the trust terms. 3. Charitable Marital Deduction Trust: Some individuals may choose to establish a Trust A that includes charitable organizations as beneficiaries. This allows them to benefit their surviving spouse while also supporting their favorite charitable causes. 4. Generation-Skipping Trust (GST): This type of Bypass Trust B is useful for those who wish to transfer wealth to grandchildren or future generations. By bypassing the surviving spouse's estate, GST can help to minimize estate taxes incurred by subsequent generations. Overall, Hillsborough Florida Marital Deduction Trust — Trust A and Bypass Trust B offer individuals in Hillsborough County, Florida, effective strategies to protect their assets, provide for their loved ones, and minimize estate tax burdens. It is essential to consult with an experienced estate planning attorney to determine which trust options are most suitable for specific circumstances.Hillsborough Florida Marital Deduction Trust, also known as Trust A, and Bypass Trust B, are estate planning tools used by residents of Hillsborough County, Florida. They are designed to minimize estate taxes and provide financial security for surviving spouses. Trust A, the Marital Deduction Trust, is established by a married couple to take advantage of the marital deduction offered by the Internal Revenue Service (IRS). This deduction allows the transfer of unlimited assets from one spouse to another, free of estate taxes, upon the first spouse's death. Trust A is funded with the assets of the deceased spouse and provides income and resources for the surviving spouse during their lifetime. Bypass Trust B, on the other hand, is established alongside Trust A and is aimed at maximizing estate tax savings. This trust is funded with an amount equal to the federal estate tax exclusion limit, which is the maximum amount that can be transferred free of estate taxes. Bypass Trust B is primarily designed to benefit the couple's children or other designated beneficiaries. There are a few different types of Hillsborough Florida Marital Deduction Trust — Trust A and Bypass Trust B, based on the specific goals and circumstances of the individual: 1. Qualified Terminable Interest Property (TIP) Trust: This type of Trust A provides the surviving spouse with income during their lifetime while maintaining control over asset distribution after their death. It allows the granter to ensure that the remaining assets pass to specific beneficiaries, such as children from a previous marriage. 2. Irrevocable Life Insurance Trust (IIT): This is a type of Bypass Trust B that holds the proceeds of a life insurance policy outside the insured's estate. It helps reduce the overall estate tax liability and ensures that the life insurance benefits are distributed according to the trust terms. 3. Charitable Marital Deduction Trust: Some individuals may choose to establish a Trust A that includes charitable organizations as beneficiaries. This allows them to benefit their surviving spouse while also supporting their favorite charitable causes. 4. Generation-Skipping Trust (GST): This type of Bypass Trust B is useful for those who wish to transfer wealth to grandchildren or future generations. By bypassing the surviving spouse's estate, GST can help to minimize estate taxes incurred by subsequent generations. Overall, Hillsborough Florida Marital Deduction Trust — Trust A and Bypass Trust B offer individuals in Hillsborough County, Florida, effective strategies to protect their assets, provide for their loved ones, and minimize estate tax burdens. It is essential to consult with an experienced estate planning attorney to determine which trust options are most suitable for specific circumstances.
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.
