A-B Marital Trusts (Bypass Trusts)
An A-B Marital Trust, also known as a Bypass Trust, is an estate planning tool designed for married couples to maximize estate tax savings while providing for the surviving spouse and heirs. This trust structure allows assets to be divided into two parts — an A Trust (Survivor's Trust) and a B Trust (Bypass Trust).
Key Features of A-B Marital Trusts
- Estate Tax Savings By dividing assets into two trusts, couples can maximize the use of each individual's estate tax exemption.
- Surviving Spouse Provision The A Trust provides for the surviving spouse's needs and may be revocable by the surviving spouse.
- Bypass Trust Benefits The B Trust, which is irrevocable, holds assets that can pass to heirs without being subject to estate taxes upon the surviving spouse's passing.
- Control Over Distribution The trust creator can specify how assets will be distributed to heirs upon the surviving spouse's passing.
Benefits of A-B Marital Trusts
- Estate Tax Efficiency Couples can take full advantage of estate tax exemptions for both spouses.
- Heirs' Financial Security Assets in the B Trust provide for heirs without being subject to estate taxes.
- Spousal Protection The surviving spouse is provided for through the A Trust, ensuring financial security.
Is an A-B Marital Trust Right for You?
A-B Marital Trusts are particularly suitable for couples with substantial assets who want to maximize estate tax savings and ensure financial security for the surviving spouse and heirs. However, setting up such a trust requires careful consideration and consultation with a legal professional to determine the best strategy for your specific situation.
Choose Us for Your A-B Marital Trust
Our experienced legal professionals are adept in creating customized A-B Marital Trusts that align with your estate planning goals. Whether you're looking to minimize estate taxes, provide for your spouse and heirs, or ensure controlled wealth transfer, we provide legal expertise that ensures your trust is well-structured and legally sound. A-B Marital Trusts (Bypass Trusts)">Contact us today to discuss your estate planning requirements and explore how we can assist you in achieving your financial and legacy goals.
