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Requirements for Trust Registration A trust must be formed by at least two or more individuals. The trust must be established in ance with the provisions outlined in the Indian Trusts Act of 1882. None of the parties involved should be disqualified under any prevailing law in India.
Here's an AB trust example. John and Mary are married and set up an AB living trust. If John dies first, his share of the trust turns into a living irrevocable trust. Mary is allowed to access the income from the trust during her life, but not the principal.
The A trust contains the surviving spouse's property interests, but they have limited control over the assets in the deceased spouse's trust; however, this limited control over the B trust will still enable the surviving spouse to live in the couple's house and draw income from the trust, provided these terms are ...
Bypass trust ? The ?B Trust? in A-B trust planning that is sheltered from the federal estate tax by the decedent's estate tax exemption amount. Because this trust ?bypasses? the estate tax in the decedent's estate and at the surviving spouse's death, this trust often is called a bypass trust.
An A-B trust is a joint trust created by a married couple for the purpose of minimizing estate taxes. It is formed with each spouse placing assets in the trust and naming as the final beneficiary any suitable person except the other spouse.