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.
Queens New York Marital Deduction Trust — Trust A and Bypass Trust B are two common types of trusts that individuals can set up to manage their assets and provide for their loved ones in Queens, New York. These trusts are designed to take advantage of the marital deduction provision in the federal estate tax laws. Trust A, also known as the Marital Deduction Trust, is established upon the death of one spouse. It allows the surviving spouse to receive income generated by the trust and use the trust's assets without triggering any immediate estate taxes. The trust is typically funded with assets that qualify for the marital deduction, such as cash, securities, or real estate. The surviving spouse can benefit from the trust during their lifetime, but they do not have full control over the trust's assets or the power to change its terms. Bypass Trust B, on the other hand, is created within the estate plan to benefit the surviving spouse and other heirs. This trust is funded with assets that do not qualify for the marital deduction, such as assets exceeding the estate tax exemption limit or assets that the deceased spouse wants to pass on to other beneficiaries. The surviving spouse can receive income from the bypass trust, but they do not have complete control over the trust's assets. Upon the spouse's death, the remaining assets in the bypass trust usually pass on to the designated beneficiaries, such as children or grandchildren, without further estate taxes. These trusts offer several benefits, including reduced estate taxes, asset protection, and ensuring that assets are distributed according to the granter's wishes. By utilizing the marital deduction provision, individuals in Queens, New York can structure their estate plan in a way that maximizes tax efficiency and provides for their loved ones. In addition to Trust A and Bypass Trust B, there may be variations or combinations of these trusts based on the unique circumstances and goals of the granter. Some individuals may also choose to set up additional trusts, such as a TIP trust (Qualified Terminable Interest Property Trust) or a Credit Shelter Trust, to further optimize their estate planning strategies. Overall, Queens New York Marital Deduction Trust — Trust A and Bypass Trust B are essential tools for individuals in Queens, New York to minimize estate taxes while providing for their surviving spouse and other beneficiaries. It is highly recommended consulting with an experienced estate planning attorney to determine the most suitable trust structures based on individual needs and goals.Queens New York Marital Deduction Trust — Trust A and Bypass Trust B are two common types of trusts that individuals can set up to manage their assets and provide for their loved ones in Queens, New York. These trusts are designed to take advantage of the marital deduction provision in the federal estate tax laws. Trust A, also known as the Marital Deduction Trust, is established upon the death of one spouse. It allows the surviving spouse to receive income generated by the trust and use the trust's assets without triggering any immediate estate taxes. The trust is typically funded with assets that qualify for the marital deduction, such as cash, securities, or real estate. The surviving spouse can benefit from the trust during their lifetime, but they do not have full control over the trust's assets or the power to change its terms. Bypass Trust B, on the other hand, is created within the estate plan to benefit the surviving spouse and other heirs. This trust is funded with assets that do not qualify for the marital deduction, such as assets exceeding the estate tax exemption limit or assets that the deceased spouse wants to pass on to other beneficiaries. The surviving spouse can receive income from the bypass trust, but they do not have complete control over the trust's assets. Upon the spouse's death, the remaining assets in the bypass trust usually pass on to the designated beneficiaries, such as children or grandchildren, without further estate taxes. These trusts offer several benefits, including reduced estate taxes, asset protection, and ensuring that assets are distributed according to the granter's wishes. By utilizing the marital deduction provision, individuals in Queens, New York can structure their estate plan in a way that maximizes tax efficiency and provides for their loved ones. In addition to Trust A and Bypass Trust B, there may be variations or combinations of these trusts based on the unique circumstances and goals of the granter. Some individuals may also choose to set up additional trusts, such as a TIP trust (Qualified Terminable Interest Property Trust) or a Credit Shelter Trust, to further optimize their estate planning strategies. Overall, Queens New York Marital Deduction Trust — Trust A and Bypass Trust B are essential tools for individuals in Queens, New York to minimize estate taxes while providing for their surviving spouse and other beneficiaries. It is highly recommended consulting with an experienced estate planning attorney to determine the most suitable trust structures based on individual needs and goals.
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.
