Wealth Management

Marital and Credit Shelter Trust

The MBT Wealth Management Group can help you take advantage of tax exclusions by pairing a Marital Trust with a Credit Shelter Trust, establishing an “A-B” Trust.


Two For One


A traditional Marital Trust allows you to pass any size estate directly to your surviving spouse without the penalty of tax implications. The only drawback is, when the surviving spouse dies and wishes to pass the balance on to heirs there may be a taxable transaction due to the loss of the first spouse’s applicable tax exclusion. MBT can help limit the impact of this loss by establishing a Marital Trust (A) and Credit Shelter Trust (B). 

When the first spouse dies, his or her half of the property goes to the beneficiaries in the trust , with the crucial condition that the surviving spouse has the right to use the property for life and is entitled to any income it generates. When the surviving spouse dies, the property passes to the trust beneficiaries, yet is not considered part of the second spouse's estate for estate tax purposes. 

This A-B Trust can help reduce taxable income on the estate while ensuring the surviving spouse receives all income. Plus, assets remaining in Trust B can be passed directly on to heirs at the surviving spouse’s death.


Features and Benefits


  • Reduce taxable impact on your estate.
  • All income generated in the Trusts is received by the surviving spouse.
  • Assets remaining may pass directly to heirs when the surviving spouse passes.
  • Learn how MBT's unique Trusted Advisors Program (TAP) can add value to your unique financial needs. 


The information above is not intended nor should it be used as a substitute for the advice of an attorney, estate or tax planner, whose advice should be sought to review your personal circumstances and goals.
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