A/B Trust Articles

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

Blended Family Estate Planning

In many cases, couples bring children into a marriage from a prior marriage or union and then have children together. This is often referred to as a blended family. Blended families highlight the need for careful estate planning to make sure the needs of each spouse are met, as well as the needs of each parents' children. If one spouse is significantly younger, this sometimes means that the older spouse’s children are close in age to the younger spouse. There can also be sibling rivalry between children of a parent and step-children. These relationships can cause more than friction between ... Read More

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