Credit Shelter Trusts
A credit shelter trust (formerly known as an AB Trust) is a valuable estate planning tool that can be used by married people to pass assets to their children tax free. If you are thinking about establishing a credit shelter trust and need legal guidance, the law office of John M. Gasidlo, Esq., is here for you.
Contact us online or by telephone at 866-761-1956 to speak with an experienced Westport credit shelter trusts attorney.
Connecticut Estate Planning Lawyer
Let's use the following simple example to illustrate how a credit shelter trust works:
A man dies, leaving his wife $3 million in inheritance. A surviving spouse inherits everything tax free. When the wife dies — her estate may be subject to significant taxation.
A credit shelter trust can help you avoid this situation by placing a portion of the first spouse's estate in trust for the children, thereby protecting it from estate taxes. When the wife dies, the money in that trust will be distributed to the children tax free.
The surviving spouse can still use the money in the credit shelter trust if they need it for education, health, maintenance and support.
We have extensive experience helping clients with credit shelter trusts and other estate planning documents. We will work with you personally to help you establish an estate plan that works for you.
*As of January 1, 2011 a Connecticut estate tax is due on any estate of more than $2 million.
Contact Us
If you need help establishing a credit shelter trust or other type of irrevocable trust, we are here to help. Contact us online or by telephone at 866-761-1956 to speak with an experienced Westport estate planning attorney.
