Options For Marital Trusts

Marital Trusts: Your Best Option For Estate Planning

Most married couples put their financial assets into a joint bank or investment account. While this seems like a common-sense solution, there are disadvantages when one spouse dies. The surviving spouse will only get one lifetime estate tax exemption. By establishing a credit shelter trust, however, spouses will each receive the benefit of their own lifetime estate tax exemption upon death.

Is it time for you to consider protecting your financial legacy from the burden of estate taxes?

The experienced attorneys of Morris, Downing & Sherred have been helping families with estate planning and marital trust accounts for more than 100 years. We handle everything in a personalized way and customize our services to meet your specific needs. From making sure you have the right marital trust for your needs, to administering the trust in an ethical, legal and professional manner, we are ready to help.

What Is A Credit Shelter Trust? What Is A Disclaimer Trust?

A credit shelter trust is often referred to among estate planning professionals as an AB trust. It allows the surviving family members to minimize estate taxes upon the death of the both parents. Under federal law, each spouse is allowed a single exemption from estate and gift taxes. A credit shelter trust, however, allows each spouse to maximize this once-in-a-lifetime exemption as a credit sufficient to offset the taxable amount. It is typically an important option for family estates valued over $1 million. Disclaimer trusts included in properly drafted wills are another way to accomplish this goal, and allow a surviving spouse to take a "wait and see" approach following the first to die before deciding whether to disclaim (refuse to accept) a portion of the decedent spouse's estate. The computations are complex, and proper handling requires planning and experience.

Experience. Dedication. Results.
Contact Morris, Downing & Sherred Today

Call our offices in Newton, New Jersey, at 973-383-2700 or contact us by email. We will arrange an opportunity for you to meet with a New Jersey or New York estate planning lawyer to discuss the advantages of a credit shelter trust.