Legal Question in Wills and Trusts in New Jersey

Re: Trust - Passed from husband to wife

Commonly called a marital-deduction trust, they integrate with by-pass trusts, which allow the spouse to participate in the tax-exempt portion of the deceased's estate, while not having the assets included in the survivor's estate on their subsequent demise. The current tax-exempt portion of one's estate is currently $1MM and rising, but proper planning must still be used to protect assets from taxes, as well as possible future creditors. Living trusts can accomplish this, but do not provide the creditor protection. I usually recommend an irrevocable trust in conjunction with some form of family partnership, so maximum tax planning can be accomplished, as well as creditor protection. This may also provide some protection from loss of assets in case of catastrophic illness.

Re: Trust - Passed from husband to wife

I believe you are referring to the A/B trusts; these trusts are incorporated into a Revocable Living Trust or Federal Will. For more info on this subject, please go to my website: www.TartaLaw.com. You are on the correct course, I suggest you research this on the website, and then consider an office consultation if you desire clarification or want to proceed further.

Re: Trust - Passed from husband to wife

Beware the promise that a trusts will solve all of your estate problems. Sometimes, living trusts are completely unnecessary, and are not the best way to go. Before you do anything, consult more than one attorney. If you feel like you are being "sold" some type of trust, get another opinion.