A/B Trust

By DouglasTurner.com • Jan 30th, 2008 • Category: Estate Planning in Colorado: Glossary of Terms

Note: The following are general definitions and any particular term may be defined differently by a particular statute, case law, or the definitions section of the document in question. Consult legal counsel before acting on any information contained in this website.

The A/B Trust

(As of January 2008. Definitions and statutes may change after this date.)

The A/B Trust is a type of Revocable Living Trust often used by married couples, wherein two trusts (i.e., trust A, also known as the “marital deduction trust”, and trust B, also known as the “credit shelter trust”) are created upon the death of the first spouse. By distributing the couple’s estate into two trusts when the first spouse dies, each spouse can, in theory, pass the maximum amount of property allowed to avoid federal estate taxes.

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DouglasTurner.com. This column is not legal advice nor does it create an attorney-client relationship with the reader. Due to limited space, complex legal concepts and rules may be stated in terms of general concepts. Based on 2007 Colorado and Federal law. Consult legal counsel before acting on any information contained in this column.
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