More examples in Estate Planning/Estate Planning
Basic Estate Planning for AB Trust Example
SmartDraw includes thousands of professional-looking diagrams like this that you can easily edit and make your own.
Text in this example:
Estate
Valued at:
$2,850,000 Balance of Assets, $1,350,000 to
"A" Trust $1,500,000 to Estate Tax Exempt
"B" Trust Basic Estate Planning - A/B Trust 1. Estate is Valued
2. Estate Tax Return is filed. 3. Trust "B" is funded.
As of 2004, this trust may be funded up to the amount sheltered by an estate tax credit, which is $1.5 million.
Under current law, this
amount will increase to
$3.5 million by 2009. 4. Trust "A" gets funded. At the surviving spouse's death, all trust assets, plus all growth passes completely estate tax-free to children At the surviving spouse;s death, Trust "A" and spouse;s assets are subject to estate taxes before going to children.
Valued at:
$2,850,000 Balance of Assets, $1,350,000 to
"A" Trust $1,500,000 to Estate Tax Exempt
"B" Trust Basic Estate Planning - A/B Trust 1. Estate is Valued
2. Estate Tax Return is filed. 3. Trust "B" is funded.
As of 2004, this trust may be funded up to the amount sheltered by an estate tax credit, which is $1.5 million.
Under current law, this
amount will increase to
$3.5 million by 2009. 4. Trust "A" gets funded. At the surviving spouse's death, all trust assets, plus all growth passes completely estate tax-free to children At the surviving spouse;s death, Trust "A" and spouse;s assets are subject to estate taxes before going to children.