To A/B, or Not To A/B, That is the Question
Most revocable living trusts for married couples, established prior to 2018, require that the trust be divided into two or more “sub-trusts” upon the death of the first spouse. This is for federal estate tax or “death tax” planning purposes. These trusts are known as A/B or A/B/C Trusts. They were designed primarily to reduce or eliminate estate taxes by preserving the federal estate tax exemption (the value of assets which can pass free of tax) of the first to die. An A/B Trust works like this: Upon the death of the first spouse the B Trust is funded ... Read More
