Marital Trust
What Does Marital Trust Mean?
A marital trust is a trust established by one spouse that enables the transfer of their assets to the surviving spouse upon their death. These trusts often include life insurance policies.
Marital trusts help the parties avoid estate and gift taxes that would typically apply to such asset transfers.
Marital trusts are also referred to as A trusts.
Insuranceopedia Explains Marital Trust
Marital trusts play a crucial role in estate planning for many individuals. By using trusts to avoid estate taxes, people can pass on the maximum possible wealth to their beneficiaries.
Another significant advantage of marital trusts is that they allow individuals to ensure their assets are passed on to their children. For example, those concerned that their spouses may remarry and not allocate a fair share of the assets to their children can establish a marital trust to safeguard this intention.
