Investopedia explains 'Marital Trust'
There are three types of marital trusts: a general power of appointment, a QTIP trust and an estate trust. A marital trust allows the couple's heirs to avoid probate and take less of a hit from estate taxes by taking full advantage of the unlimited marital deduction, which allows spouses to pass assets to each other without tax consequences. However, when the surviving spouse dies, the remaining trust assets will be subject to estate taxes. To further avoid estate taxes when the surviving spouse dies, a marital trust is sometimes used in conjunction with a credit shelter trust (also called a “B” trust).
An example of when a marital trust might be used is when a couple has children from a previous marriage and wants to pass all property to the surviving spouse upon death but provide for their individual children upon the surviving spouse's death. In case the surviving spouse remarries, the deceased spouse's assets will go to his or her children instead of to the new spouse.
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