Marital Planning in the Joint Trust: Balancing Income Tax, Transfer Tax, and Asset Protection Concerns
by Brenda Geiger, JD
Marital planning in the joint trust context can be complex. As counselors, we are often asked which plan a client should choose, and sometimes the answer isn't entirely clear. Download this article to explore the tax and non-tax implications of four main marital options upon the death of the first spouse.
- Leaving all property to a spouse in a survivor’s trust;
- Dividing property into an A trust and B trust after the death of the first spouse;
- Leaving all of the deceased spouse’s property to the surviving spouse and including provisions for the surviving spouse to disclaim to a bypass trust; and
- Using a Clayton election after the death of the first spouse.