When will a living trust be reportable for estate tax purposes?
While a living trust will not be in the probate estate of a decedent, it will be reportable for estate tax purposes if– * it is a revocable trust, or * it is an irrevocable trust where the grantor retains certain rights in the trust (such as retention of life income/benefit, disposition rights of income or principal, or trustee appointment). 11. What is a three testamentary trust arrangement (A-B-Q)? The A share would be the portion qualifying for the marital deduction. This share (which alternatively may be in the form of an outright distribution to the surviving spouse) can provide for income to be distributed to the spouse along with an unlimited power of invasion over the principal. The B share, (generically referred to as the unified credit bypass shelter trust), is funded to the amount of the exemption equivalent of the Federal unified credit ($625,000 in 1998). This trust can provide for mandatory or discretionary income distributions to the surviving spouse or any other benefi
