Complex Will - Credit Shelter Marital Trust for Spouse
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The trust is revocable, so you can change its terms at any time during your lifetime. It becomes an irrevocable trust when you die, and assets usually what's left of the estate tax exemption go to the trust.
The "A Trust" is also commonly referred to as the "Marital Trust," "QTIP Trust," or "Marital Deduction Trust." The "B Trust" is also commonly referred to as the "Bypass Trust," "Credit Shelter Trust," or "Family Trust."
What Is a Credit Shelter Trust? A Credit Shelter Trust is designed to allow affluent couples to reduce or completely avoid estate taxes when passing assets on to heirs, typically the couple's children.
A credit shelter trust (CST) is a trust created after the death of the first spouse in a married couple. Assets placed in the trust are generally held apart from the estate of the surviving spouse, so they may pass tax-free to the remaining beneficiaries at the death of the surviving spouse.
First, in a standard credit shelter trust, there is no step-up in basis at the death of the surviving spouse.Second, the credit shelter trust is a separate taxpayer and requires its own tax return, Form 1041.
A credit shelter trust (CST) is a trust created after the death of the first spouse in a married couple. Assets placed in the trust are generally held apart from the estate of the surviving spouse, so they may pass tax-free to the remaining beneficiaries at the death of the surviving spouse.
Credit shelter trusts are trusts for affluent couples to minimize or avoid their estate tax liabilities by passing on proceeds from individual estates onto the partner's estate.
The trust is revocable, so you can change its terms at any time during your lifetime. It becomes an irrevocable trust when you die, and assets usually what's left of the estate tax exemption go to the trust.
The "A Trust" is also commonly referred to as the "Marital Trust," "QTIP Trust," or "Marital Deduction Trust." The "B Trust" is also commonly referred to as the "Bypass Trust," "Credit Shelter Trust," or "Family Trust."