Passing away in the United States has become expensive. Not only are funeral-related costs rising, but so are the taxes. For those with a larger estate, the surviving family members simply receive less wealth. Those with a smaller estate, though, end up passing on the expense to their family, which can mean that the family will receive nothing. One way to minimize estate taxes is through estate planning and an AB trust in Florida.
It is not too common for spouses to pass away at the same time. When one outlives the other, the surviving spouse ends up with the estate tax bill for the other as well as any remaining assets. Part of estate planning could include placing an individual’s assets into a trust. An AB trust is known as the tax-saver trust and is an irrevocable trust. It benefits the surviving spouse.
Since the surviving spouse does not own the assets, they are not taxed. Then, when the surviving spouse passes away, too, the beneficiaries receive the assets. Often, the beneficiaries are the children. The surviving spouse can receive interest, use of the property and a spending benefit.
As an irrevocable trust, no changes can be made it to once the first spouse passes away. In some circumstances, this can cause a problem. To figure out the pros and cons of an AB trust, spouses are encouraged to speak with an estate planning legal professional who works with trusts and wills. An estate planning lawyer may go over the couple’s estate and finances. Then, they may be able to advise the couple accordingly in order to help preserve their assets and minimize their tax burden.
