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.
Salt Lake Utah Marital Deduction Trust is a type of trust designed to take advantage of the marital deduction for estate tax purposes in the Salt Lake City, Utah area. It involves creating a trust that allows the transfer of assets from one spouse to another without incurring estate taxes upon the death of the first spouse. Trust A, also known as the Marital Deduction Trust, is the primary trust established under Salt Lake Utah Marital Deduction Trust. It allows the surviving spouse to receive the assets of the deceased spouse while still qualifying for the marital deduction. This means that the assets transferred to the surviving spouse are not subject to estate tax at the time of transfer. Bypass Trust B, also referred to as the Credit Shelter Trust or the Family Trust, is the second trust established as part of Salt Lake Utah Marital Deduction Trust. It aims to maximize the estate tax benefits by taking advantage of the individual estate tax exemption for both spouses. Upon the death of the first spouse, a portion of the assets passes into the Bypass Trust, up to the estate tax exemption limit, while the remaining assets transfer to Trust A. This allows both trusts to be utilized effectively, minimizing the overall estate tax liability. By implementing both Trust A and Bypass Trust B in Salt Lake Utah Marital Deduction Trust, couples can ensure that their assets are properly managed and distributed upon death while minimizing estate tax obligations. These trusts provide flexibility in estate planning, allowing for the preservation and transfer of wealth to future generations. In summary, Salt Lake Utah Marital Deduction Trust encompasses Trust A (Marital Deduction Trust) and Bypass Trust B (Credit Shelter Trust). By utilizing these trusts, couples in Utah can protect their assets, qualify for the marital deduction, and minimize estate tax liabilities.Salt Lake Utah Marital Deduction Trust is a type of trust designed to take advantage of the marital deduction for estate tax purposes in the Salt Lake City, Utah area. It involves creating a trust that allows the transfer of assets from one spouse to another without incurring estate taxes upon the death of the first spouse. Trust A, also known as the Marital Deduction Trust, is the primary trust established under Salt Lake Utah Marital Deduction Trust. It allows the surviving spouse to receive the assets of the deceased spouse while still qualifying for the marital deduction. This means that the assets transferred to the surviving spouse are not subject to estate tax at the time of transfer. Bypass Trust B, also referred to as the Credit Shelter Trust or the Family Trust, is the second trust established as part of Salt Lake Utah Marital Deduction Trust. It aims to maximize the estate tax benefits by taking advantage of the individual estate tax exemption for both spouses. Upon the death of the first spouse, a portion of the assets passes into the Bypass Trust, up to the estate tax exemption limit, while the remaining assets transfer to Trust A. This allows both trusts to be utilized effectively, minimizing the overall estate tax liability. By implementing both Trust A and Bypass Trust B in Salt Lake Utah Marital Deduction Trust, couples can ensure that their assets are properly managed and distributed upon death while minimizing estate tax obligations. These trusts provide flexibility in estate planning, allowing for the preservation and transfer of wealth to future generations. In summary, Salt Lake Utah Marital Deduction Trust encompasses Trust A (Marital Deduction Trust) and Bypass Trust B (Credit Shelter Trust). By utilizing these trusts, couples in Utah can protect their assets, qualify for the marital deduction, and minimize estate tax liabilities.
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.
