The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your "Gross Estate." The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.
Once you have accounted for the Gross Estate, certain deductions are allowed in arriving at your "Taxable Estate." These deductions may include mortgages and other debts, estate administration expenses, property that passes to surviving spouses and qualified charities. The value of some operating business interests or farms may be reduced for estates that qualify.
After the net amount is computed, the value of lifetime taxable gifts (beginning with gifts made in 1977) is added to this number and the tax is computed. The tax is then reduced by the available unified credit. Presently, the amount of this credit reduces the computed tax so that only total taxable estates and lifetime gifts that exceed $1,000,000 will actually have to pay tax. A credit shelter trust is a trust for the benefit of a surviving spouse, created to avoid estate taxes at a first spouse's death and which takes advantage of the available federal estate tax credit.
The Stamford Married Person's Will for the State of Connecticut with Children with a Credit Shelter Trust for Spouse and a Trust for Children is a legal document that outlines how the estate of a married person with children will be handled upon their death. This will ensure that both the spouse and children are provided for and protected. It involves the creation of a Credit Shelter Trust (CST) for the benefit of the surviving spouse and a separate Trust for Children to protect their inheritance. Here are the key components and variations of this type of will: 1. Basics of Stamford Married Person's Will: — Name: Stamford Married Person's Will with Children — Applicable StateConnecticutcu— - Beneficiaries: Surviving spouse and children — Primary Objective: To provide for the surviving spouse and protect the children's inheritance 2. Credit Shelter Trust (CST): — Purpose: The CST is established to utilize the deceased spouse's estate tax exemption amount while providing income and support for the surviving spouse. — Key Features— - Assets placed in the CST are exempt from estate taxes upon the surviving spouse's death. — The surviving spouse is entitled to income generated by the CST. — Principal of the CST may be used for the surviving spouse's health, education, maintenance, or support. — Alternative Names: A-B Trust, Bypass Trust, Family Trust, or Exemption Trust. 3. Trust for Children: — Purpose: This trust ensures that the children's inheritance is protected and managed until they reach a certain age or accomplish specific milestones. — Key Features— - Trust assets are held for the benefit of the children until certain conditions are met. — The trust's terms define when and how the children will receive their inheritance. — Appointed trustees manage the trust assets and distribute them according to the predetermined guidelines. — Alternative Names: Children's Trust, Inheritance Trust, Descendants' Trust. 4. Additional Considerations: — Guardianship: The will may also designate a guardian for minor children in case both parents pass away. — Specific Bequests: The will allows for specific gifts or bequests to individuals or charitable organizations. — Executor: The will appoints a trusted individual as the executor, who administers the estate and ensures the terms of the will are followed. — Contingent Beneficiaries: The will designates alternative beneficiaries in case the initial beneficiaries predecease the testator. It is important to note that specific legal advice should be sought when creating a Stamford Married Person's Will for the State of Connecticut with Children with a Credit Shelter Trust for Spouse and a Trust for Children, as individual circumstances may require personalized adjustments and provisions. Consultation with an attorney knowledgeable in Connecticut estate planning law is recommended to ensure the will aligns with the testator's wishes and the relevant legal requirements.The Stamford Married Person's Will for the State of Connecticut with Children with a Credit Shelter Trust for Spouse and a Trust for Children is a legal document that outlines how the estate of a married person with children will be handled upon their death. This will ensure that both the spouse and children are provided for and protected. It involves the creation of a Credit Shelter Trust (CST) for the benefit of the surviving spouse and a separate Trust for Children to protect their inheritance. Here are the key components and variations of this type of will: 1. Basics of Stamford Married Person's Will: — Name: Stamford Married Person's Will with Children — Applicable StateConnecticutcu— - Beneficiaries: Surviving spouse and children — Primary Objective: To provide for the surviving spouse and protect the children's inheritance 2. Credit Shelter Trust (CST): — Purpose: The CST is established to utilize the deceased spouse's estate tax exemption amount while providing income and support for the surviving spouse. — Key Features— - Assets placed in the CST are exempt from estate taxes upon the surviving spouse's death. — The surviving spouse is entitled to income generated by the CST. — Principal of the CST may be used for the surviving spouse's health, education, maintenance, or support. — Alternative Names: A-B Trust, Bypass Trust, Family Trust, or Exemption Trust. 3. Trust for Children: — Purpose: This trust ensures that the children's inheritance is protected and managed until they reach a certain age or accomplish specific milestones. — Key Features— - Trust assets are held for the benefit of the children until certain conditions are met. — The trust's terms define when and how the children will receive their inheritance. — Appointed trustees manage the trust assets and distribute them according to the predetermined guidelines. — Alternative Names: Children's Trust, Inheritance Trust, Descendants' Trust. 4. Additional Considerations: — Guardianship: The will may also designate a guardian for minor children in case both parents pass away. — Specific Bequests: The will allows for specific gifts or bequests to individuals or charitable organizations. — Executor: The will appoints a trusted individual as the executor, who administers the estate and ensures the terms of the will are followed. — Contingent Beneficiaries: The will designates alternative beneficiaries in case the initial beneficiaries predecease the testator. It is important to note that specific legal advice should be sought when creating a Stamford Married Person's Will for the State of Connecticut with Children with a Credit Shelter Trust for Spouse and a Trust for Children, as individual circumstances may require personalized adjustments and provisions. Consultation with an attorney knowledgeable in Connecticut estate planning law is recommended to ensure the will aligns with the testator's wishes and the relevant legal requirements.
