We’ve discussed why an estate might need to file an estate tax return even if the estate doesn’t owe any tax in a previous post. And that recommendation still holds. But let’s look at another way an estate plan would need to utilize the IRS rules for the benefit of a person’s beneficiaries.
A standard tool for planning for families as the Marital or AB Trust. Essentially, a married couple creates each of their wills with provisions for 2 trusts to be created at the death of one of the spouses, the A Trust and the B Trust. The A and B Trusts have differing rules and guidelines, as well as different methods of funding and different goals, in an effort to maximize the use of the estate tax exemption for a married couple.