Complex Will with Credit Shelter Marital Trust for Large Estates Wyoming Form
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People also ask
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What is a disclaimer trust?
A disclaimer trust is a type of trust that contains embedded provisions, usually included in a will, allowing a surviving spouse to put specific assets under the trust by disclaiming ownership of a portion of the estate. Disclaimed property interests are then transferred to the trust, without being taxed.
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What is the difference between a credit shelter trust and a disclaimer trust?
Unlike a disclaimer trust, under a credit shelter trust that is mandatorily funded, the surviving spouse may have a limited power of appointment to change the disposition to children and other beneficiaries in the event that circumstances change.
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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 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 is the downside of a disclaimer trust?
The drawback of course to a plan like this is that the surviving spouse may decide not to execute a disclaimer and create the Disclaimer Bypass Trust and then later change the eventual beneficiaries of the trust. This risk is particularly apparent in plans involving remarried couples with children from prior marriages.
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Is a credit shelter trust the same as a disclaimer trust?
A disclaimer trust is established in a donor's will. It does not create a specific type of trust, but rather, it gives the surviving spouse the option to elect to create a trust, including a credit shelter trust, after Spouse A passes away.
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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 is a bypass trust also known as a credit shelter trust marital trust charitable remainder trust qtip trust?
A bypass trust (also referred to as a credit shelter trust) is a testamentary trust created on the grantor's death funded with assets equal to the grantor's remaining estate tax exemption.
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