A/B Trust - Pros and Cons

The A/B trust is a type of estate planning tool that can provide you with a number of benefits as a married couple. Here are some of the pros and cons that you will get from the A/B trust.


One of the biggest advantages with this type of trust is that you can get around paying estate taxes. This trust will allow you to separate your estate equally between two spouses. This way, they can each give a portion of their estate to their beneficiaries when they die and get under the estate tax exemption.

Another advantage of this type of trust is that the living spouse can receive income from the deceased spouse's property. They will still be able to utilize the assets in the trust even though it is not technically theirs.


One of the problems with this type of trust is that you cannot sell the property of your spouse when they die. If the property is in the trust, you can use it but you cannot sell it.

Another potential problem with this type of trust is that there are no assurances on the tax benefit. The estate tax exemption is constantly changing and lawmakers have the ability to change it anytime.

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