This Complex Will with Credit Shelter Trust for Large Estates form is a complex Will designed to enable a couple to maximize the amount of property that can pass free of estate taxes. The Will leaves the maximum tax free amount allowed (i.e. 1,000,000.00 as of 2001) to a trust and the remainder of property to the surviving spouse. All of the property passing to the Spouse is estate tax free. Therefore, no estate taxes are due at the death of the first Spouse. Since the trust has 1 million dollars that can pass to the children tax free, the surviving spouse can also leave 1 million to a similar trust or children and thereby enable 2 million dollars instead of 1 to pass to the children estate tax free. Income from the trust can be disbursed to the surviving spouse and children.
Maine Complex Will with Credit Shelter Marital Trust for Large Estates
Description
How to fill out Maine Complex Will With Credit Shelter Marital Trust For Large Estates?
Welcome to the largest legal files library, US Legal Forms. Right here you can find any template including Maine Complex Will with Credit Shelter Marital Trust for Large Estates forms and save them (as many of them as you want/need). Make official files with a several hours, instead of days or weeks, without having to spend an arm and a leg with an legal professional. Get your state-specific form in a couple of clicks and be confident with the knowledge that it was drafted by our qualified lawyers.
If you’re already a subscribed consumer, just log in to your account and click Download near the Maine Complex Will with Credit Shelter Marital Trust for Large Estates you want. Due to the fact US Legal Forms is online solution, you’ll generally have access to your saved forms, regardless of the device you’re using. Find them inside the My Forms tab.
If you don't come with an account yet, just what are you waiting for? Check out our guidelines below to get started:
- If this is a state-specific sample, check out its applicability in the state where you live.
- See the description (if accessible) to learn if it’s the correct example.
- See more content with the Preview option.
- If the example matches your requirements, click Buy Now.
- To make an account, choose a pricing plan.
- Use a credit card or PayPal account to sign up.
- Download the template in the format you require (Word or PDF).
- Print out the document and fill it with your/your business’s details.
Once you’ve filled out the Maine Complex Will with Credit Shelter Marital Trust for Large Estates, send it to your legal professional for verification. It’s an extra step but an essential one for making confident you’re completely covered. Sign up for US Legal Forms now and access thousands of reusable samples.
Form popularity
FAQ
Assets That May Not Be Eligible for a Step-Up in Basis 401(k) accounts. Pensions. Tax deferred annuities. Certificates of deposit.
Yes, the surviving spouse may serve as trustee of the credit shelter trust.All of the assets in the credit shelter trust, including any appreciation in value during the surviving spouse's lifetime, pass free of estate tax to the beneficiaries.
First, in a standard credit shelter trust, there is no step-up in basis at the death of the surviving spouse.Second, the credit shelter trust is a separate taxpayer and requires its own tax return, Form 1041.
Assets that have been conveyed into a revocable living trust do get a step-up in basis when they are distributed to the beneficiaries after the passing of the grantor. We should point out the fact that the beneficiaries would be responsible for any future appreciation from a capital gains perspective.
I live in California, a community property state.Federal tax code section 1014(b)(6) provides that community property assets step up 100 percent in basis at the death of one spouse (even though the other spouse survives).
In the case of a marital trust, the IRS subjects the remaining trust assets to federal estate taxes when the surviving spouse passes. However, a couple can take advantage of the federal gift and estate tax exemption. This is the amount that you can pass on to heirs before you'd ever owe an actual estate tax.
A credit shelter trust (CST) is a trust created after the death of the first spouse in a married couple. Assets placed in the trust are generally held apart from the estate of the surviving spouse, so they may pass tax-free to the remaining beneficiaries at the death of the surviving spouse.
A marital trust starts as a revocable living trust. A surviving spouse can be its trustee.
Credit shelter trusts are trusts for affluent couples to minimize or avoid their estate tax liabilities by passing on proceeds from individual estates onto the partner's estate.