Definitions for "A-B TRUST"
A Living Trust with a provision that lets you provide for your surviving spouse, keep control over who will receive your assets after your souse dies, and leave up $2 million (in 2003) to your Beneficiaries, estate-tax free. (This amount will increase over the next several years as the federal estate tax exemption increases. By the year 2009, an A-B Living Trust will let you and your spouse leave your Beneficiaries up to $7 million estate tax free, and with no probate).
A type of trust used in the estate planning of married couples in order to take full advantage of the individual estate tax credit and the unlimited marital deduction. The A trust is a form of the marital trust. The B trust is a form of the credit equivalent bypass trust.
A living trust with a provision that lets you provide for your surviving spouse, keep control over who will receive your assets after your spouse dies, and leave up to $3 million (in 2004 and 2005) to your beneficiaries, estate-tax free. (Under current tax law, this amount will increase over the next several years as the federal estate tax exemption increases.)