A/B Trust: The Most Popular Estate Tax Minimization Trust

The A/B trust is a commonly used tool for estate planning. This type of trust has several different benefits that you can take advantage of including the ability to maximize tax exemptions. Here are a few things to consider about the A/B trust.

The A/B Trust

The A/B trust is a tool that can be used to minimize the effect of estate taxes when a couple passes away. The idea behind an A/B trust is that you can divide up the property of a couple into separate parts. For example, the husband is going to take ownership of part of the estate while the wife takes the other part. By doing this, they will be able to get around paying estate taxes whenever they die. If they both pass away, they can each pass on their separate part of the estate without paying taxes to the government.

Using the Assets

One of the good features with this type of trust is that the other spouse can still use assets in the trust whenever they need to. For example, if the husband has something in his part of the trust, the wife will still have access to this asset without causing any problems.

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