AB trust is a joint trust created by a married couple; after the death of one of the spouses, the trust is divided into the survivor’s part (Trust A) and the bypass part (Decedent’s Trust or Trust B).
Through separation, the AB trust effectively minimizes inheritance taxes and defers them until the death of the surviving spouse.
The surviving spouse has limited control over the decedent’s trust, but the terms of the decedent’s trust may be set to allow the surviving spouse to access and even earn income from the assets.
AB trusts are no longer widely used as the estate tax exemption, now indexed for inflation, is sufficient for most states.
The agency, if necessary, allows any person or entity to act on behalf of another person when the beneficiary cannot explicitly give permission to do so.
A generation skip trust (GST) is a legally binding arrangement whereby assets are passed on to the grantor’s grandchildren or anyone 37.5 years younger, bypassing the grantor’s next generation of children.
Annuity preservation trusts (GRAT) are estate planning instruments in which the grantor freezes assets in a trust from which they receive an annual income.
A Health Care Power of Attorney (HCPA) is a legal document that gives a specific person the right to speak with others and make decisions on your behalf regarding your health, treatment, and care.