For Tax and Estate Planning purposes, as a married couple, maximize the use of your Federal Estate Tax Exemptions through the utilization of an AB Trust.
There are two vehicles available in which to set up an AB Trust
- Living Will and Last Testament
- Revocable Living Trust
The “A Trust” also referred to as the
- Marital Trust
- Marital Deduction Trust
- QTip Trust
The “B Trust” is also known as the
- Family Trust
- Bypass Trust
- Credit Shelter Trust
In 2011, the Federal Estate Tax Exemption was made transferrable between married couples. Should one pass away in 2011 or after, their entire Federal Estate Tax Exemption is not needed to avoid Estate Taxes.
If you are on your second, third, or additional marriage and have different beneficiaries, it is in your best interest to explore the benefits of the AB Trust.
The AB Trust can only function if you secure them while both spouses are alive. Don’t put off securing this beneficial part of your estate and tax planning as once you become a widow or widower, it is too late.
Below is an example of how the AB Trust works to your benefit:
For more information on setting up an AB Trust as part of your Estate and Tax Planning, contact Daniel A. Baron of Baron Law to maximize your Federal Estate Tax savings upon your passing. Contact us today at 216-573-3723.