Complex Will with Credit Shelter Marital Trust for Large Estates Oklahoma Form
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People also ask
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What is the difference between a credit shelter trust and a marital trust?
Credit Shelter Trust vs Marital Trust - Is a Marital Trust the Same as a Credit Shelter Trust? No. A Marital Trust is a type of Credit Shelter Trust. You and your spouse can use a Marital Trust to pass assets to a surviving spouse, children or grandchildren.
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What happens to marital trust when a spouse dies?
Once the surviving spouse dies, the marital trust then passes onto other beneficiaries. The terms of the trust will then dictate how the beneficiaries will receive the income or principal from the trust.
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How is a trust distributed after death?
After the death of a trust maker, their designated successor trustee manages and distributes assets ing to trust documents without needing court involvement for probate court approval. This ensures assets are transferred ing to deceased wishes while simultaneously streamlining administration.
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Does a trust become irrevocable upon death of the first spouse?
When one spouse dies before the second spouse, the question is, does the revocable trust turn irrevocable? The general rule is both grantors must die for a revocable trust to become irrevocable. However, there are legal ways to change the general rule for co-grantors.
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How does a marital trust work for a surviving spouse?
Also called an "A" trust, a marital trust goes into effect when the first spouse dies. Assets are moved into the trust upon death and the income that these assets generate go to the surviving spouse—under some arrangements, the surviving spouse can also receive principal payments.
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Is a marital trust a complex trust?
Some common types of simple and complex trusts include marital trusts, family trusts and gifting trusts: A marital trust is an irrevocable trust that allows the transfer of a deceased spouse's assets to trust for the surviving spouse without any estate taxes, due to a “marital deduction” on the estate tax return.
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What are the disadvantages of a credit shelter trust?
One of the disadvantages of a credit shelter trust is that it does not give the surviving spouse immediate access or full control over the trust assets. Instead, the spouse can generally receive income from the trust and may be allowed to use the trust principal to pay for health, education, and maintenance as needed.
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What happens to a trust when one spouse dies?
Under typical circumstances, the surviving spouse would become the sole trustee after the death of one spouse. The surviving spouse would control the shared property, and the personal property of the deceased spouse would be distributed to the beneficiaries.
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