A-B Trust (noun):
An A-B Trust is created by a married couple with the goal of minimizing estate taxes. When the first spouse passes away the trust is split in two.
Here are some details about what makes a trust an A-B Trust:
The beneficiary of the trust must be someone other than the surviving spouse.Trust A is the surviving spouse’s trust and can still be changed by the surviving spouse. Trust B is the deceased spouse’s trust and is no longer able to be changed. This type of trust allows for the living spouse to make changes to only their portion of the property. The spouse who passed away has made the beneficiaries clear they wanted and no one, not even the living spouse, can change their trust after they pass away.
There are many types of trusts each designed to help protect the assets placed into the trust for the benefit of someone. If you are dealing with a trust, or trustee and need help finding out your rights as a beneficiary please call us, hit the chat button, or fill out a contact us form. We are happy to help in whatever way we can to assist you with getting your rightful inheritance from an A-B Trust or any other type of trust.
Words commonly used with this term include:
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