The Leading Trust and Estate Litigation Firm in Michigan

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.

Call us at 248-419-1968 or e-mail a lawyer at Prince Law Firm to find out if an AB living trust is the right solution for you.

Estate Planning Law Blog


Common estate planning misconceptions

Putting together an estate plan is not the hardest thing to do in the world, but it isn’t necessarily the simplest thing to do either. Common misconceptions about estate planning certainly don’t make the process any easier. So, let’s clear up some well-known myths...

Reviewing estate planning goals after entering a second marriage

It might not be uncommon to experience a variety of changes throughout life, and each of these changes could alter your goals and preferences for the future. Upon entering a second marriage, there are numerous topics to consider as you prepare to align your plans with...

Getting POAs set up for your college student

Helping a child prepare for college is a pretty involved process. There are a lot of things to think about and plan for. One thing many parents in Michigan may not think to do is set up powers of attorney for their college-aged kids. POAs serve a valuable purpose, and...

Entering retirement? It’s time to look at your estate plan

As you saw the economy take a downturn and people become frustrated when trying to find work, you decided that it was time to retire. You could leave your position and have it open up for someone else, all without it negatively affecting you.  Now that you’ve made the...

Could you benefit from a long-term care insurance policy?

When it comes to modern medical care, long-term care is one of the most expensive needs that a person could have. Long-term care may necessitate residency in a nursing home, which may cost thousands of dollars a month. Long-term care could also mean having skilled...