What is an A-B Revocable Living Trust?
An A-B Revocable Living Trust is one version of a Revocable Living Trust that married couples can use to minimize or eliminate federal estate taxes. At the death of the first spouse, the trust assets are divided in half. The surviving spouse sets up two trusts: the bypass trust and the survivor’s trust. Each trust qualifies for the federal estate tax exemption, and accordingly, can save the married couple substantial federal estate taxes. Most married couples can benefit from having their Revocable Living Trust drafted as an A-B trust.
