Backdating allocation of marital assets into survivor trust dating in love norway poland site
However, after the surviving spouse dies, it will be included in his or her taxable estate unless it has been spent.If the surviving spouse gifts the assets while living, a federal gift tax or a federal estate tax may be levied.After the grantor's death, income from an estate trust will be taxed to the grantor's spouse if distributed, or to the trust if not distributed.A non-marital trust, also known as a bypass trust or credit shelter trust, is a type of trust that also allows you to take care of your spouse and ensure that your children will inherit your estate. (For more information, read With a bypass trust, the grantor places the assets in a trust that names the grantor's spouse and other family members as income beneficiaries.Typically, the amount transferred to the trust is equal to the applicable exclusion of million for 2008.This number may change depending on congressional actions or inaction.A marital trust (sometimes referred to as an A- trust) is a unique estate planning tool that allows you to provide for your spouse and at the same time ensure that your children also receive an inheritance. It's difficult to control future circumstances after your death: wouldn't you like to know that if your spouse remarries, she will not leave your assets to the new spouse while disinheriting your children? In essence you are protecting the assets from the claims of a subsequent spouse.
Married couples can pass unlimited amounts of money and assets to each other, either during life or at death, without any gift tax or estate tax implications.
Now that you are trustee of your own revocable living trust, you will want to manage it to maximum advantage.
While this is not difficult to do, you should remember that a trustee cannot always do everything that an individual can do, particularly after the death of a settlor when a trust has become irrevocable.
In order for this planning to be valid, the grantor must live three years from the time of the policy transfer, otherwise the policy proceeds will not be excluded from the grantor's estate.
If the trust is funded, any income that is or may be used to pay premiums on a life insurance policy on the grantor or the grantor's spouse will be taxed to the grantor under the grantor trust rules .