A B Living Trust

Estate Planning for Couples – A B Living Trusts

A B Living Trusts

With an A B Living Trust —sometimes referred to as an “exemption” or “bypass” trust, the assets and property contributed to the trust by the first grantor to die will only be distributed to his or her beneficiaries when the surviving grantor dies. The surviving grantor is not able to change the beneficiaries of the deceased grantor’s trust property.

Example – John and Joan (husband and wife) create a Joint Trust. A few years later, John dies. Using a typical Joint Living Trust, some or all of John’s share of the estate’s assets may be held in trust for Joan during her lifetime. During Joan’s remaining years, she can change who will receive that trust property after her death. While this may be what John also wanted, what if his wishes may have been: “I want Joan be able to use and enjoy my share as long as she lives, but upon her death, I want to make sure that whatever is left goes to my specific beneficiaries (brother, sister, children from first marriage, etc.) instead of beneficiaries that Joan may choose (Joan’s children from a former marriage, Save the Planet foundation, etc.) after I’ve died.” If you want to make certain that each person’s property goes to his or her specific and clearly spelled-out beneficiaries, an A B Living Trust would be be a better choice than a Joint Trust or a Simple Will, no matter the size of your estate.

Revocable Trusts for Married Couples – A B Living Trusts Example

Revocable Trusts can be structured to reduce or eliminate transfer taxes, especially for married couples.

Specific Trust Instruments

  • Bypass Trust
  • Credit Shelter Trusts
  • A B Living Trusts
  • ABC Trusts
  • Exemption Trusts
  • Disclaimer Trusts

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