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Marital Trust

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Definition: The "A Trust" in an AB Trust or ABC Trust estate plan which is used by a married couple to defer the payment of estate taxes until after the death of the second spouse to die.

In an AB Trust estate plan, the A Trust holds the amount that is not exempt from federal estate taxes after the first spouse dies. It qualifies for the unlimited marital deduction, which means that the property held in the A Trust will not be subject to estate taxes while the surviving spouse is alive.

In an ABC Trust estate plan, the A Trust holds the amount that is not exempt from both federal and state estate taxes after the first spouse dies.

Also Known As: A Trust, Marital Deduction Trust, QTIP Trust

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