MLchartDataset catalogue

Formula AB trust

Term · Law · MLC-T-LAW-002201

An estate planning tool for married couples designed to minimize federal estate taxes. Upon the death of the first spouse, the trust divides into two separate trusts: the survivor's trust (Trust A) and the bypass or credit shelter trust (Trust B). Trust B is funded with an amount equal to the deceased spouse's remaining federal estate tax exemption, sheltering it from estate tax in the surviving spouse's estate.

Table 1. Record
IdentifierMLC-T-LAW-002201
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-002201",
  "term": "Formula AB trust",
  "field": "Law",
  "definition": "An estate planning tool for married couples designed to minimize federal estate taxes. Upon the death of the first spouse, the trust divides into two separate trusts: the survivor's trust (Trust A) and the bypass or credit shelter trust (Trust B). Trust B is funded with an amount equal to the deceased spouse's remaining federal estate tax exemption, sheltering it from estate tax in the surviving spouse's estate.",
  "url": "https://mlchart.com/terminology/law/formula-ab-trust/"
}

Record 2,109 of 5,441 in Law terminology (MLC-0107). Request the full dataset.