Is A Marital Trust Right For You?
Many couples create their estate plans together, carefully considering their beneficiaries and heirs, making sure their plans complement one another. An important element of this planning is making sure to take care of each other in their plans. If you and your spouse are wondering how to accomplish this, you may want to consider a marital trust.
The Michigan marital trust is a planning tool that allows you to make a gift to your spouse without estate taxes. Federal law puts no limit on the amount you can leave your spouse at death, as opposed to possible taxes for gifts during your lifetime.
At Bingham Legal Group PC, our attorneys have over 20 years of experience assisting clients throughout Michigan with their estate planning needs. Our full-service firm can help you with all your legal needs and help you understand what types of trusts may work best for you and your family, including the marital trust.
The Mechanics Of A Marital Trust
As stated above, federal tax law allows you to leave an unlimited amount of money to your spouse that can be deducted from your taxable estate, called the marital deduction. The trust must meet certain IRS requirements in order to qualify for the marital deduction.
Two types of trusts will accomplish this goal:
- Credit Shelter Trust: Sometimes referred to as an “AB Trust,” the trust splits into Trust A and Trust B when the first spouse dies.
- QTIP Trust: The qualified terminable interest property trust actually designates a beneficiary other than the spouse, but gives the spouse all the trust income for his or her life.
These trusts are not simple but can be very effective. Contact our office today to discuss your estate plan and whether the marital trust can help you accomplish your goals.
Discuss Your Marital Trust Questions With Us
Do you have more questions about creating a marital trust? Contact our Bingham Farms office today to schedule an appointment with our skilled estate planning attorneys. Call 248-952-8783 or send an email.