Does Your Estate Plan Need An AB Trust?

If your marriage involves ownership of significant assets, an AB trust should be part of your estate plan. Married couples of means receive substantial tax relief on the federal gift and estate tax sides, due to the AB trust’s “portability.” This means that millions of dollars can be transferred without owing tax, when the spouses’ individual estate tax exemptions are combined.

We have the facts you need about the pros and cons of AB trusts at the law firm of Vieira & DiGianfilippo. Our estate planning attorneys personally relate to your decisions as family members and business owners in their own right. They can customize the right combination of will, trusts, powers of attorney and health care directives that makes sense for you and your beneficiaries. We have performed this quality legal service for countless client families for almost 60 years.

Personalized Estate Solutions In Rhode Island And Massachusetts

While the portability tax break in AB trusts may be beneficial to affluent families, possible disadvantages are:

• Expenses: When one spouse dies, ways in which property is divided could have tax consequences.
• Restrictions: The surviving spouse has limited rights to use property mentioned in the irrevocable trust.
• Documentation: Separate records on that property should be kept by the surviving spouse.
• Annual trust income tax returns: A separate taxpayer ID will be needed.
• Changes in tax laws: These may cause married couples to revise or revoke trusts.

We are every bit as proud of the personal service we extend as we are of the expertise that goes into our clients’ estate plans. When you have a question, we have an answer. Your concerns are our concerns. And you can count on us to spell out every available option in plain English, not confusing legalese.

Your Initial Consultation With Vieira & DiGianfilippo

To schedule a discussion about AB trusts or any potentially useful estate planning tool, call us at 401-453-2950 in Providence, 508-238-2510 in South Easton or 401-453-2950 in Mansfield. Your email will be responded to promptly.