A Marital Trust, or as it is sometimes called, the “A Trust,” is an Irrevocable Trust designed to hold the deceased spouse’s assets that exceed the amount that can be sheltered from death taxes. The Marital Trust assets are not taxed at the first spouse’s death, but they are part of the second spouse’s estate. If the second spouse is not wealthy, this allows the use of both spouses’ exemptions without actually giving the less wealthy spouse ownership.
The Marital Trust shelters the assets from the surviving spouse’s creditors and future spouses. The Bypass Trust can also be crafted to ensure that the property passes 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 Marital Trust allows a married couple to act as a team, maximizing their combined estate and generation-skipping tax exemptions.
Tax avoidance, asset protection and providing the opportunity to keep assets within the family bloodline.
The Marital Trust has a tax ID and must file a separate tax return.
The surviving spouse must be the only beneficiary.
Yes, to meet the estate and generation-skipping tax requirements, the spouse must be the sole beneficiary.
If you have any questions about Marital Trusts or any other estate planning topics, feel free to 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 Marital Trusts and Estate Planning so you can make the best decisions for yourself and your family.
Peter has done a great job with the estate planning for my father. He is very thorough and patient as we, the family need to make decisions.
Peter explained things in a way that was easy to understand. Everything was done in the time frame he said it. Could not have been better!
Like another reviewer, I contacted Peter through his website using the free consultation link, for a question regarding PA inheritance taxes. The question was quite technical and difficult to explain, and the answer was nowhere to be found on the web. Peter grasped precisely what I was asking, and provided a clear, helpful response (with a touch of humor) the very next day.
Affable...yet surprisingly cerebral estate planning atty. High marks all the way around.