
Complex Will with Credit Shelter Marital Trust for Large Estates West Virginia 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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How is income from a credit shelter trust taxed?
Credit Shelter Trust and federal income taxes If their combined estate value is less than the exemption amount, they won't owe federal estate taxes anyway. However, funding the CST will lock in a potentially lower tax basis, eventually costing the heirs more in federal income tax when they sell the inherited assets.
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What happens to marital trust when surviving spouse dies?
In most cases, the trust assets pass on to the couple's children or other family members when the surviving spouse passes.
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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 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 credit shelter trust when the surviving spouse dies?
When the surviving spouse dies, any remaining principal can be distributed to children or remain in trust for their benefit, as you direct. Even though the surviving spouse has access to income (and principal, if needed), the assets in the credit shelter trust are not considered part of the survivor's taxable estate.
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