An AB Trust is two different trusts used as part of their Estate Plan to minimize estate taxes. The married couple creates these trusts in Wills or Revocable Living Trusts. The “A Trust” often called the “Marital Trust“, “Marital Deduction Trust” or “QTIP” Trust holds and amount that the deceased spouse’s exemption cannot shelter from tax and the “B Trust” or “Credit Shelter Trust,” “Family Trust,” or “Bypass Trust” holds the amount that the deceased spouse’s exemption can shelter.
The AB Trust allows a spouse to provide for the care of the surviving spouse while preserving all death tax exemptions and providing shelter from the surviving spouse’s creditors and future spouses. The AB Trust can also be crafted to ensure that the assets pass to the deceased spouse’s children or family at the surviving spouse’s death, keeping them out of the hands of the second husband/wife.
Here are some questions clients, beneficiaries, and Trustees ask:
The B Trust can include beneficiaries other than the surviving spouse. For example, children are often included as beneficiaries.
The “Marital Trust” is another term for the “A” Trust. The Marital Trust is a part of an AB Trust Estate Plan.
Asset protection, estate tax avoidance and maintaining assets within the family.
At the first spouse’s death, careful planning is required to follow the steps necessary to preserve the tax exemptions. Each trust is assigned a tax ID and must file a separate annual income tax return.
The “Marital Trust” is another term for the “A” Trust. The Marital Trust is a part of an AB Trust Estate Plan.
If you have any questions about AB Trusts or any other estate planning topics, please contact us to schedule a free consultation. For more than two decades Klenk Law has focused only on Estate Law. We’ve seen it all, and this experience allows us to explain complex estate law and planning techniques clearly and concisely. We make it easy for you to understand AB Trusts so you can make the best decisions for yourself and your family.
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
I have worked with Peter Klenk & his associates for some time now and I have found them to be ultra-qualified, knowledgeable and diligent about their work. I highly recommend them.
Peter and the whole team at Klenk Law are top notch. They are thorough, efficient and understanding of client needs. He was able to tailor our estate planning needs just how we envisioned.
Peter came highly recommended by a close friend to do our estate planning. We have been putting off for years. He is knowledgeable, professional and easy to work with.
You & your staff are the best thank you for everything.
Peter Klenk is an extraordinary attorney with positive guidance and knowledge for all of your Trust and Estate needs. We have used him for over 20 years.
Let us put our expertise to work for you.
Free consultation within 24 hours.