A-B Trust: التعريف، كيفية العمل، الفوائد الضريبية

A:B Trust: كيفية العمل

The trust is set up in such a way that the assets of the first spouse to die are placed into a trust, which then holds and manages those assets for the benefit of the surviving spouse. The surviving spouse has the right to use the assets in the trust, but they do not technically own the assets.

Here is an example of how an A-B trust might work:

1. A couple creates an A-B trust and names each other as the initial trustees.
2. The couple transfers ownership of some of their assets, such as real estate and investments, into the trust.
3. Upon the death of the first spouse, the assets in the trust are distributed to a “bypass trust” (also known as a “credit shelter trust” or “family trust”) that has been created for the benefit of the surviving spouse.
4. The surviving spouse has the right to use the assets in the bypass trust for their own benefit, but they do not technically own the assets.
5. When the surviving spouse dies, the assets in the bypass trust are distributed to the beneficiaries specified in the trust document. Because the assets are not considered part of the surviving spouse’s estate, they are not subject to estate taxes.

A-B trusts can be complex and require the assistance of a qualified attorney to set up and manage. It is important to carefully consider the terms of the trust, as well as the potential tax implications, before creating an A-B trust.