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Types of Marital Trusts | Attorney in Raleigh NC
Qualified Domestic Trust (QDOT)
If you have a spouse who is not a U.S. citizen, you could have trouble passing on your assets to him or her. In this case, you will need a QDOT trust. It will allow your surviving spouse to benefit from your estate while also deferring estate taxes paid on it. A QDOT has several guidelines that must be met in order for it to be effective, which are outlined by the IRS.
Credit Shelter Trust
A credit shelter trust, also known as an AB trust, can also be established in order to protect both the surviving spouse and the children of the deceased. When the first spouse dies, the trust is split into two separate trusts – Trust A, which holds the deceased spouse’s assets and Trust B, which contains the surviving spouse’s property. Technically, the assets from Trust A go to the designated beneficiaries, but in most cases, the surviving spouse has control of it. When the surviving spouse dies, the assets in Trust B go to the beneficiaries.
Remember, the common factor in any marital trust is that it allows you to defer any taxes paid on your estate through the marital deduction. The trust must meet the specific requirements of the IRS to qualify for it. You can consult with an attorney to ensure that you have created a plan that meets federal guidelines and that will help protect you and your family.
Our attorney in Raleigh NC is here to help you understand this information if you need more information. You can also visit back with previous blog posts, as we have more information about the various types of marital trusts.
Are you thinking of estate planning now, so that when the time comes, your affairs are in order and have representatives that will take care of them for you, should you pass in an untimely death or become incapacitated? If so, it might be time to contact our attorney in Raleigh NC.
Contacting an attorney to help with estate planning will help you ensure that you include everything that’s needed for estate plans. Wills, trusts, power of attorney, and other things are important to include if they’re needed. Don't hesitate to call to make an appointment, now.
Interested in learning more about estate planning now? Our attorney in Raleigh NC understands how overwhelming the process of creating a plan might be. However, read over the following blogs and contact our office to talk with us about your concerning issues. We can help.
- Estate Planning Checklist for Beginners, Part One
- Estate Planning Checklist for Beginners, Part Two
- Estate Planning Checklist for Beginners, Part Three
- Estate Planning Checklist for Beginners, Part Four
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- Estate Planning Checklist for Beginners, Part Six