ARE THERE SPECIAL PLANNING CONSIDERATIONS FOR SPOUSES?
Apart from simply leaving property outright to a spouse, through the use of trusts not only can taxes sometimes be reduced or minimized, but spouses can be substantially provided for and protected from claims of possible creditors. This can be done while being able to control the disposition of the trust property at the surviving spouse’s death. Planning for spouses involves considerations of need, taxes and protection. The marital trust (discussed above) obviously is driven by tax-savings. The form of the marital trust, however, can be very broad, giving the surviving spouse unrestricted access to trust property, or very restricted, giving the spouse an income interest only, or somewhere in between. Income only is usually considered too restrictive, unless there is no question that the spouse is adequately otherwise provided for and the principal of the marital trust will never be needed for the spouse’s care. Sometimes, totally apart from tax considerations, there may be incentives t
