Trusts may seem like complicated estate planning tools, but, with the right help and a trustworthy legal counselor, a Michigan resident can confidently execute this important testamentary device. There are many different types of trusts that individuals can use to meet their estate planning goals. One popular form of trust is the AB trust, which is often used by married couples.
Married individuals may place their property into an AB trust and name their children as beneficiaries when they pass on. However, an AB trust allows the surviving spouse to use and even sell items of property in the trust that were owned by their deceased partner before their death. An AB trust protects the wealth and assets of the deceased spouse and preserves it for the decedent’s beneficiaries, while also allowing the surviving spouse to use the assets to continue to live.
AB trusts are useful for individuals who wish to minimize the impact of taxes and other costs on their estates when they pass. Individuals can use wills to pass property to their spouses and children, but probated wills and estates can be heavily taxed, reducing the overall size of the estates. With an AB trust, a person can allow their spouse to live a comfortable existence until their death, all while leaving their property to their chosen beneficiaries.
Setting up an AB trust, or any other type of trust for that matter, can take time and require knowledge. Estate planning attorneys can discuss their clients’ options with them to help find the best devices to protect their wealth and assets.