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.
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California Complex Will with Credit Shelter Marital Trust for Large...
Long Beach California Complex Will with Credit Shelter Marital Trust for Large Estates
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FAQ
The current federal estate tax exemption is $11.7 million. This means individuals can gift up to the federal exemption amount during their lifetime or after death without incurring a federal? the ?death? and ?lifetime gift? tax is combined.
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.
The four main types are living, testamentary, revocable and irrevocable trusts.
A marital trust allows the couple's heirs to avoid probate and take less of a hit from estate taxes by taking full advantage of the unlimited marital deduction?a provision that enables spouses to pass assets to each other without tax consequences.
Yes, the surviving spouse may serve as trustee of the credit shelter trust. If the spouse serves as the sole trustee he or she must be restricted to using income and principal for needs related to health, education, support and maintenance.
Trusts are established to provide legal protection for the trustor's assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes.
Credit Shelter Trust vs Marital Trust - Is a Marital Trust the Same as a Credit Shelter Trust? No. A Marital Trust is a type of Credit Shelter Trust. You and your spouse can use a Marital Trust to pass assets to a surviving spouse, children or grandchildren.
The primary benefit of CSTs is that the surviving spouse can use the trust's principal and income during the remainder of their lifetime, for example, for medical or educational expenses. The remaining assets then pass to the beneficiaries and are not subject to estate taxes.
The current federal estate tax exemption is $11.7 million. This means individuals can gift up to the federal exemption amount during their lifetime or after death without incurring a federal? the ?death? and ?lifetime gift? tax is combined.
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.
Long Beach California Complex Will with Credit Shelter Marital Trust for Large Estates Related Searches
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Interesting Questions
A Long Beach Complex Will is a legal document that outlines how a person's assets and estate will be distributed after their death.
A Credit Shelter Marital Trust is a trust established to minimize estate taxes by allowing a person to pass assets to their spouse tax-free while still preserving those assets for their heirs.
No, Long Beach Complex Wills can be used for estates of all sizes. However, they are particularly beneficial for large estates that may be subject to significant estate taxes.
A Credit Shelter Marital Trust works by allowing a person to transfer assets equal to the estate tax exemption amount (or less) into the trust upon their death. These assets are then protected from estate taxes when passed on to the surviving spouse and can ultimately be distributed to other beneficiaries, such as children or grandchildren.
A Credit Shelter Marital Trust can benefit individuals or couples with significant assets who wish to minimize estate taxes while ensuring their heirs receive a substantial portion of their estate.
Assets placed in a Credit Shelter Marital Trust are held and managed by a trustee, who is responsible for distributing income or principal to the surviving spouse and beneficiaries according to the terms of the trust agreement. After the death of the surviving spouse, the remaining assets can pass to the trust beneficiaries without being subject to further estate taxes.
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Who May Make a Will: An individual 18 or more years of age who is of sound mind may make a will. Also, a conservator may make a will for the conservatee if the conservator has been so authorized by a court order pursuant to Section 2580.
Competence to Make Will: An individual is not mentally competent to make a will if at the time of making the will either of the following is true:
(1) The individual does not have sufficient mental capacity
to be able to
(A) understand the nature of the testamentary act,
(B)understand
and recollect the nature and situation of the individual's property, or
(C) remember and understand the individual's relations to living descendants,
spouse, and parents, and those whose interests are affected by the will.
(2) The individual suffers from a mental disorder with symptoms including delusions or hallucinations, which delusions or hallucinations result in the individual's devising property in a way which, except for the existence of the delusions or hallucinations, the individual would not have done. see California Probate Code Section 6100.5.
Property to Pass by Will: A will may dispose
of the following property:
(a) The testator's separate property.
(b) The one-half of the community property that belongs to the
testator under Section 100.
(c) The one-half of the testator's quasi-community property that
belongs to the testator under Section 101.
Who may receive property: A will may make
a disposition of property to any person,
including but not limited to any of the following:
(a) An individual;
(b) a corporation;
(c) an unincorporated
association, society, lodge, or any branch thereof;
(d) a county, city,
city and county, or any municipal corporation;
(e) any state, including
this state;
(f) the United States or any instrumentality thereof; or
(g)
a foreign country or a governmental entity therein. See California Probate
Code Section 6102.
Execution: A will must be in writing and signed
by one of the following:
1) by the testator;
2) in the testator's name by some other person
in the testator's presence and by the testator's direction;
3) by a conservator
pursuant to a court order to make a will under the Section 2580.
The will must be witnessed by being signed by at least two person each of whom 1) being present at the same time, witnessed either the signing of the will or the testator's acknowledgment of the signature of the will and 2) understand that the instrument they sign is the testator's will. see California Probate Code Section 6110.
A written will is validly executed if its execution complies with any of the following:
(a) The will is executed in compliance with Section 6110 or 6111
or Chapter 6 (commencing with Section 6200)(California statutory will)
or Chapter 11 (commencing with Section 6380)
(Uniform International Wills Act).
(b) The execution of the will complies with the law at the time of execution of the place where the will is executed.
(c) The execution of the will complies with the law of the place where the time of execution or at the time of death the testator is domiciled, has a place of adode, or is a national. See California Probate Code Section 6113.
Validity of Holographic Wills: A will that does not comply with Section 6110 is valid as a holographic will, whether or not witnessed, if the signature and the material provisions are in the handwriting of the testator. If a holographic will does not contain a statement as to the date of its execution and:
(1) If the omission results in doubt as to whether its provisions or the inconsistent provisions of another will are controlling, the holographic will is invalid to the extent of the incosistency unless the time of its execution is established to be after the date of execution of the other will.
(2) If it is established tha the testator lacked testatmentary capacity at any time during which the will might have been executed, the will is invalid unless it is established that it was executed at a time when the testator had testamentary capacity.
Any statement of testamentary intent contained in a holographic will may be set forth either in the testator's own handwriting or as part of a commercially printed from will. See California Probate Code Section 6111.
Extrinsic Evidence: Extrinsic evidence is admissible to determine whether a document constitutes a will pursuant to Section 6110 or 6111, or to determine the meaning of a will or a portion of a will if the meaning is unclear. See California Probate Code Section 6111.5.
Witnesses: Any person who is generally competent to be a witness may act as a witness to a will. A will or any provision is not invalid because the will is signed by an interested witness. Unless there are at least two other subscribing witnesses to the will who are disinterested witnesses, the fact that the will makes a devise to a subscribing witness creates a presumption that the witness procured the devise by duress, menace, fraud or undue influence. This a a presumption which will affect the burden of proof. This presumption will not apply where the witness is a person to whom the devise is made solely in a fiduciary capacity. If the devise made by the will to an interested party fails because the presumption applied to the devise and the witness fails to rebut the presumption, the interested witness will take such proportion of the devise made to the witness in the will as does not exceed the share of the estate which would be distributed to the witness if the will were not established. See California Probate Code Section 6112.
Revocation: A will or any part of the will may be revoked by the following:
(a) A subsequent will which revokes the prior will or part expressly or by inconsistency.
(b) Being burned, torn, canceled, obliterated, or destroyed, with the intent or purpose of revoking it, by either the testator or another person in the testator's presence and by the testator's direction. See California Probate Code Section 6120.
A will executed in duplicate or any part thereof will be revoked if one of the duplicates is burned, torn, canceled, obliterated, or destroyed, with the intent and for the purpose of revoking it, by either the testator or another person in the testator's presence and by the testator's direction. See California Probate Code Section 6121.
Divorce:
(a) Unless the will expressly provides otherwise, if after executing a will the testator's marriage is dissolved or annulled, the dissolution or annulment revokes all of the following:
(1) Any disposition or appointment of property made by
the will to the former spouse.
(2) Any provision of the will conferring a general or special power
of appointment on the former spouse.
(3) Any provision of the will nominating the former spouse as executor,
trustee, conservator, or guardian.
(b) If any disposition or other provision of a will is revoked solely by this section, it is revived by the testator's remarriage to the former spouse.
(c) In case of revocation by dissolution or annulment:
(1) Property prevented from passing to a former spouse because
of the revocation passes as if the former spouse failed to survive the
testator.
(2) Other provisions of the will conferring some power of office
on the former spouse will be interpreted as if the former spouse failed
to survive the testator. See California Probate Code Section 6122.
Unless the will expressly provides otherwise, if after executing a will the testator's domestic partnership is terminated, the termination revokes all the following:
(1) Any disposition or appointment of property
made by the will to the former domestic partner.
(2) Any provision of the will conferring a general
or special power of appointment on the former domestic partner.
(3) Any provision o the will nominating the
former domestic partner as executor, trustee, conservator, or guardian.
(b) If any disposition or other provision of a will is revoked solely by this section, it is revived by the testator establishing another domestic partnerhsip with the former domestic partner.
(c) In cases of revocation by termination of a
domestic partnership:
(1) Property prevented from passing to a former
domestic
Locating Will: If the testator's will was
last in the testator's possession,
the testator was competent until death, and neither the will nor
a duplicate original of the will can be found after the testator's death,
it is presumed that the testator destroyed the will with intent to revoke
it. This presumption is a presumption affecting the burden of producing
evidence. 6124.
Note: All law summaries and previews are subject to the disclaimer located on the main forms page.
Who May Make a Will: An individual 18 or more years of age who is of sound mind may make a will. Also, a conservator may make a will for the conservatee if the conservator has been so authorized by a court order pursuant to Section 2580.
Competence to Make Will: An individual is not mentally competent to make a will if at the time of making the will either of the following is true:
(1) The individual does not have sufficient mental capacity
to be able to
(A) understand the nature of the testamentary act,
(B)understand
and recollect the nature and situation of the individual's property, or
(C) remember and understand the individual's relations to living descendants,
spouse, and parents, and those whose interests are affected by the will.
(2) The individual suffers from a mental disorder with symptoms including delusions or hallucinations, which delusions or hallucinations result in the individual's devising property in a way which, except for the existence of the delusions or hallucinations, the individual would not have done. see California Probate Code Section 6100.5.
Property to Pass by Will: A will may dispose
of the following property:
(a) The testator's separate property.
(b) The one-half of the community property that belongs to the
testator under Section 100.
(c) The one-half of the testator's quasi-community property that
belongs to the testator under Section 101.
Who may receive property: A will may make
a disposition of property to any person,
including but not limited to any of the following:
(a) An individual;
(b) a corporation;
(c) an unincorporated
association, society, lodge, or any branch thereof;
(d) a county, city,
city and county, or any municipal corporation;
(e) any state, including
this state;
(f) the United States or any instrumentality thereof; or
(g)
a foreign country or a governmental entity therein. See California Probate
Code Section 6102.
Execution: A will must be in writing and signed
by one of the following:
1) by the testator;
2) in the testator's name by some other person
in the testator's presence and by the testator's direction;
3) by a conservator
pursuant to a court order to make a will under the Section 2580.
The will must be witnessed by being signed by at least two person each of whom 1) being present at the same time, witnessed either the signing of the will or the testator's acknowledgment of the signature of the will and 2) understand that the instrument they sign is the testator's will. see California Probate Code Section 6110.
A written will is validly executed if its execution complies with any of the following:
(a) The will is executed in compliance with Section 6110 or 6111
or Chapter 6 (commencing with Section 6200)(California statutory will)
or Chapter 11 (commencing with Section 6380)
(Uniform International Wills Act).
(b) The execution of the will complies with the law at the time of execution of the place where the will is executed.
(c) The execution of the will complies with the law of the place where the time of execution or at the time of death the testator is domiciled, has a place of adode, or is a national. See California Probate Code Section 6113.
Validity of Holographic Wills: A will that does not comply with Section 6110 is valid as a holographic will, whether or not witnessed, if the signature and the material provisions are in the handwriting of the testator. If a holographic will does not contain a statement as to the date of its execution and:
(1) If the omission results in doubt as to whether its provisions or the inconsistent provisions of another will are controlling, the holographic will is invalid to the extent of the incosistency unless the time of its execution is established to be after the date of execution of the other will.
(2) If it is established tha the testator lacked testatmentary capacity at any time during which the will might have been executed, the will is invalid unless it is established that it was executed at a time when the testator had testamentary capacity.
Any statement of testamentary intent contained in a holographic will may be set forth either in the testator's own handwriting or as part of a commercially printed from will. See California Probate Code Section 6111.
Extrinsic Evidence: Extrinsic evidence is admissible to determine whether a document constitutes a will pursuant to Section 6110 or 6111, or to determine the meaning of a will or a portion of a will if the meaning is unclear. See California Probate Code Section 6111.5.
Witnesses: Any person who is generally competent to be a witness may act as a witness to a will. A will or any provision is not invalid because the will is signed by an interested witness. Unless there are at least two other subscribing witnesses to the will who are disinterested witnesses, the fact that the will makes a devise to a subscribing witness creates a presumption that the witness procured the devise by duress, menace, fraud or undue influence. This a a presumption which will affect the burden of proof. This presumption will not apply where the witness is a person to whom the devise is made solely in a fiduciary capacity. If the devise made by the will to an interested party fails because the presumption applied to the devise and the witness fails to rebut the presumption, the interested witness will take such proportion of the devise made to the witness in the will as does not exceed the share of the estate which would be distributed to the witness if the will were not established. See California Probate Code Section 6112.
Revocation: A will or any part of the will may be revoked by the following:
(a) A subsequent will which revokes the prior will or part expressly or by inconsistency.
(b) Being burned, torn, canceled, obliterated, or destroyed, with the intent or purpose of revoking it, by either the testator or another person in the testator's presence and by the testator's direction. See California Probate Code Section 6120.
A will executed in duplicate or any part thereof will be revoked if one of the duplicates is burned, torn, canceled, obliterated, or destroyed, with the intent and for the purpose of revoking it, by either the testator or another person in the testator's presence and by the testator's direction. See California Probate Code Section 6121.
Divorce:
(a) Unless the will expressly provides otherwise, if after executing a will the testator's marriage is dissolved or annulled, the dissolution or annulment revokes all of the following:
(1) Any disposition or appointment of property made by
the will to the former spouse.
(2) Any provision of the will conferring a general or special power
of appointment on the former spouse.
(3) Any provision of the will nominating the former spouse as executor,
trustee, conservator, or guardian.
(b) If any disposition or other provision of a will is revoked solely by this section, it is revived by the testator's remarriage to the former spouse.
(c) In case of revocation by dissolution or annulment:
(1) Property prevented from passing to a former spouse because
of the revocation passes as if the former spouse failed to survive the
testator.
(2) Other provisions of the will conferring some power of office
on the former spouse will be interpreted as if the former spouse failed
to survive the testator. See California Probate Code Section 6122.
Unless the will expressly provides otherwise, if after executing a will the testator's domestic partnership is terminated, the termination revokes all the following:
(1) Any disposition or appointment of property
made by the will to the former domestic partner.
(2) Any provision of the will conferring a general
or special power of appointment on the former domestic partner.
(3) Any provision o the will nominating the
former domestic partner as executor, trustee, conservator, or guardian.
(b) If any disposition or other provision of a will is revoked solely by this section, it is revived by the testator establishing another domestic partnerhsip with the former domestic partner.
(c) In cases of revocation by termination of a
domestic partnership:
(1) Property prevented from passing to a former
domestic
Locating Will: If the testator's will was
last in the testator's possession,
the testator was competent until death, and neither the will nor
a duplicate original of the will can be found after the testator's death,
it is presumed that the testator destroyed the will with intent to revoke
it. This presumption is a presumption affecting the burden of producing
evidence. 6124.
Note: All law summaries and previews are subject to the disclaimer located on the main forms page.