New Survivor's trust form needed after one spouse passes ?

[kimchu]

For an AB-Trust, do you need new Trust forms drawn up for the "Survivor's Trust" or "bypass Trust" after one spouse pass away ?

My parents have an "AB-Trust" in place. My dad passed away and my understanding of how AB trust works is that now two trusts would be in place - "Survivor's Trust" or "bypass Trust". What would be the mechanics of diving the trust ? Do we need to draw up new trust forms for the "survivor trusts" and/or the the "bypass Trust" or does the original "AB Trust" document stands and the important tasks would be to re-register the assets and reallocate assets between the two trusts ?

New Survivor's trust form needed after one spouse passes ?

 

[army judge]

For an AB-Trust, do you need new Trust forms drawn up for the "Survivor's Trust" or "bypass Trust" after one spouse pass away ?

My parents have an "AB-Trust" in place. My dad passed away and my understanding of how AB trust works is that now two trusts would be in place - "Survivor's Trust" or "bypass Trust". What would be the mechanics of diving the trust ? Do we need to draw up new trust forms for the "survivor trusts" and/or the the "bypass Trust" or does the original "AB Trust" document stands and the important tasks would be to re-register the assets and reallocate assets between the two trusts ?

New Survivor's trust form needed after one spouse passes ?

I regret the recent passing of your father.

I trust your time of grieving will soon pass, but he'll always be remembered and loved.

Okay, let's try and address your questions.

If you're utilizing an AB Trust, you should possess significant assets.

I'm talking assets approaching the federal exemption on estates of $3,500,000 for each person.

If you have such a trust (AB Trust) and you didn't use a qualified estate planning attorney, you're taking unnecessary risks.

I hope you didn't set this trust up with forms you purchased over the internet.

This is too complicated for an internet forum.

It is also too complicated to try without a qualified estate planning attorney.

If your parent's net assets did not approach $6,000,000, you should not have an AB Trust in place.

Either way, you need to take this question and all your documents to a qualified estate planning attorney and discuss what approach is best.

You might also want the current trust reviewed.

Before creating an AB trust, couples should understand what they're getting into.

When one spouse dies, the trust cannot be changed.

See, if your mothers was done improperly, she may be faced with a big problem.

You should not attempt to do anything, until you have consulted an attorney.

If it was set up incorrectly, your mother could take a huge tax bite!

Possible drawbacks of an AB Trust include:

* Restrictions on the surviving spouse's use of the property. As discussed above, the surviving spouse has only limited rights to use trust property in the irrevocable trust.

* Expense of legal or accounting help. When one spouse dies, the survivor will need to hire a lawyer or accountant to determine how to best divide the couple's assets between the irrevocable trust and the surviving spouse's revocable living trust. How the property is divided can have important tax consequences.

* Trust tax returns. The surviving spouse must get a taxpayer ID number for the irrevocable trust and file an annual trust income tax return. Like any tax return, this requires some work.

* Recordkeeping. The surviving spouse must keep separate records for the irrevocable trust property.

* Uncertainty about the tax laws. Because Congress is almost sure to tinker with estate tax laws again soon, you may end up wanting to change or revoke a trust you create now.


http://www.nolo.com/legal-encyclopedia/article-29621.html