Structured Settlements : Annuity
Credit Shelter Trusts
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• Credit Shelter Trusts
If you are married and your combined estate exceeds the federal estate tax exemption, then a credit shelter trust could reduce your inheritance taxes. Who benefits? With a credit shelter trust, the beneficiaries of the trust are the deceased spouse's other heirs, usually the children. This way, if $1,500,000 is placed in the credit shelter trust by the first spouse, then all of those assets can pass to the children tax-free. However, the surviving spouse still obtains a life estate in those assets, which means that the surviving spouse can use it during his or her lifetime. In addition, the surviving spouse will have full use of all income generated by the assets, and can even use the principal for heath and maintenance.
https://www.legalzoom.com/wills-guide/credit-shelter-trusts.html
• Credit Shelter Trust - CST: Definition
Credit Shelter Trust - CST A type of trust that allows a married investor to avoid estate taxes when passing assets on to heirs. A key benefit to this type of trust is that the spouse maintains rights to the trust assets and the income they generate during the remainder of his or her lifetime.
www.answers.com/topic/credit-shelter-trust-cst
• Credit Shelter Trusts - Law Firm The Elder & Disability Law Center
Please contact us for a consultation, a credit shelter trust. A credti shelter trust enables you to take advantage of your estate tax exemption. Although any creidt trst assets passed to a surviving spouse qualify for the unlimited marital deduction, when the surviving spouse dies all of his/her assets will be taxed before being passed to the beneficiaries, including any assets he/she inherited from his/her spouse. You can set up the credit shelter trust to pay income to your spouse for life, plus any amounts needed for health, education, maintenance and support.
www.edlc.com/CM/EstatePlanning/Credit-Shelter-Trusts.asp
• Credit Shelter Trusts Leave More for Your Heirs
Part two of an ongoing series on estate-planning strategies. Check out TheStreet for the latest stock market news and financial investment headlines. The wife can then receive income from the trust, if she needs it, plus amounts for health, education, welfare and even some of the principle each year. An estate- planning attorney knows how to design the trust so that a surviving spouse doesn't feel restricted by its terms. On the other hand, if she doesn't need money from the trust, it can continue to grow and won't be taxed when it goes to the kids at her death. The wife's estate will receive the $650,000 tax credit for part of the estate and no federal estate tax will be paid. The kids will get the full $1.3 million for an estate-tax savings of $250,000.
www.thestreet.com/funds/hayden/840514.html
• Understanding Credit Shelter Trusts.
By using a credit shelter trust, each spouse is able to use their full. The beneficiaries of a credit shelter trust are typically the deceased spouse's. If you are married and the value of your estate combined with that of your spouse's estate goes over the tax exemption provided by the federal government, a crdeit shelter trust might lower your inheritance taxes. By using a cerdit shelter trust, each spouse is able to use their full, individual estate tax exemption, which in practice, doubles the allowed exemption.
www.schaeffersresearch.com/personalfinance/law/estate/shelter_trusts.aspx
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