Detroit AB Living Trust Attorneys
Setting up a trust is one way in which to preserve assets for a spouse or other beneficiaries upon your death. At Prince Law Firm in Bloomfield Hills, Michigan, we have years of experience helping clients establish many different types of trusts. One of the more common trusts that married couples benefit from is called an AB living trust.
What Is An AB Trust?
Also known as a credit shelter, an AB trust lets a married couple pass a maximum amount of assets and property to their children and beneficiaries after both spouses die. At the same time, this ensures that after one spouse dies, the surviving spouse is financially comfortable throughout the rest of his or her life.
Instead of outright leaving property and assets to a surviving spouse, each spouse leaves most or all of his or her property to an AB trust. When one spouse dies, the surviving spouse can use that property, though within certain restrictions that are placed. However, it is important to know that even though the spouse can use the property and assets, the surviving spouse does not actually own the property and assets. This is one of the main reasons that an AB trust provides such extensive tax savings. The property and assets are not subject to the applicable estate taxes when the second spouse dies, since the second spouse never legally owned them.
When setting up an AB living trust, each spouse may name final beneficiaries who will receive the trust’s property and assets when the surviving spouse dies. Spouses often name the same people, such as their children, as final beneficiaries, but it is not mandatory.
Contact An AB Living Trust Attorney
Estate planning can seem too complex and emotionally demanding. Our firm can assess your situations, assets, property and goals. With this information we can tailor your wills, trusts and other estate planning documents to suit your individual needs.