A/B trust: Estate tax planning for married couples

If you don’t understand the differences between a will and a trust, it may cost your surviving spouse a great deal  of money.

A Last Will & Testament

    If your estate is subject to estate taxes and you leave your property directly to your surviving spouse, he or she loses the multimillion dollar federal tax exemption.

A Trust

    If you have a trust, the trust instructions can set up new trusts when you die, sometimes referred to as A/B Trusts.

    The use of the A/B trust enables both you and your surviving spouse to claim their federal estate tax exemption allowance, potentially saving the estate hundreds of thousands of dollars.  See the estate tax section for more information.


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