Common
Questions
(1) Completing a Living Trust & Pricing
(2) Titling Assets in Your Trust
(3) Changes In Marital Status
(4) Amendments, Reviews, & Changes
(5) Why & When To Review & Update
A Trust
(6) Why You May No Longer Need
or Want An AB or ABC Trust
(7) Important Issues When Someone
Dies or is Dying
(8) Real Estate Issues
(9) Medical Directives
(10) Granting / Obtaining Signature
Power
(11) Trust Copies & Originals
(12) Incapacity Issues
(13) Confidentiality Issues & Policies
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Why You May No Longer Need or Want An AB or ABC Trust
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For many years the AB & ABC trusts were the lockstep approaches
and dominant offerings in the living trust arena (for a married
couple). Under prior law such an approach may have made sense but
under current law the ever-increasing estate exemption amounts
can make an AB trust a totally unnecessary headache and hassle
for many. Further, an AB or ABC trust can actually lead to certain
tax disadvantages in estates that do not exceed the estate exemption
amount as well as impose significant restrictions, responsibilities,
complications, accountability, irrevocability, paperwork, and required
tax filings on the surviving spouse for the remainder of your spouse’s
lifetime (discussed
in this handout).
These facts led our law office to begin (around 1999) educating
our clients on a little talked about third approach called the
Disclaimer Trust Approach. If you have an AB or ABC trust these
represent just a few of the reasons why it is critical for every
married couple to revisit this issue and review their married trust.
As a matter of reference, since we have been offering and detailing
the choices, we estimate over 90% of married couples are choosing
the Disclaimer approach reflecting many spouses’ general desire
to leave matters as flexible, simple and straightforward on their
spouse as possible while also maintaining the same potential to
pass as much tax-free as the AB and ABC trust.
Be sure to click
here or the above link to read about this important
issue.
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