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Whether for business purposes or for personal matters, everyone has to handle legal situations at some point in their life. Filling out legal paperwork requires careful attention, starting with picking the correct form sample. For example, if you pick a wrong edition of the Trust A B With C, it will be declined once you submit it. It is therefore crucial to get a reliable source of legal files like US Legal Forms.
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One of these trusts receives assets up to the amount of the estate tax exemption. This trust is often referred to as the "Exemption" or "By-Pass" Trust (i.e., Trust "B"). Any amount of the decedent's share above the exemption is funded to the other trust (i.e., usually Trust "C").
The ?C Trust? includes assets ?Q-tipped? to be included in the surviving spouse's taxable estate. Upon the surviving spouse's passing, the remaining trust assets are typically distributed to secondary beneficiaries, often the grantor's children or other chosen heirs.
An A-B trust is a joint trust created by a married couple; upon one spouse's death, the trust splits into a survivor portion (the A trust) and a bypass portion (the decedent's trust, or B trust).
Here's an example: Joe and Mary are worth $12 million, jointly. When Joe dies he has $6.25 million in his Revocable Living Trust and his estate plan includes AB Trust planning. Under these facts, $5.25 million will go into the B Trust under Mary's name and $1 million will remain in the A Trust, both for Mary's benefit.