Start Backdating allocation of marital assets into survivor trust

Backdating allocation of marital assets into survivor trust

If the surviving spouse is allowed to use all of the "B Trust assets - or if no more than the "B" Trust amount (that is, the amount that is free of federal estate taxes) goes immediately to someone other than the surviving spouse, there are no federal estate taxes until the death of the survivor.

Answer I don't know that I have enough information to answer this question. Is it a "separate property" state or a "community property" state?

That will have an effect on what can be allocated to each trust.

Let me give an example: Suppose the only asset that husband and wife own is a $7MM home (owned in the name of the trust). If husband died this year, it would be split in one of 2 ways, depending on the language of the trust.

Split #2: 2/7 would be allocated to the "B" trust and 5/7 would be allocated to the survivor's trust. As for the tax ID number, you would get a tax ID number for the "B" Trust and the "C" Trust (if there is a "C" Trust) at the time of the deceased spouse's death; the surviving spouse would continue to use his or her social security number.

This information is not intended to substitute for professional legal advice and does not create an attorney-client relationship.

You should accept legal advice only from a licensed legal professional with whom you have an attorney-client relationship.

Thank you Atty Brewer for your very prompt and complete answer.