Exemption Trust

Exemption Trust

A trust set up by a married couple into which both spouses agree to deposit all assets of the first spouse to die, even if they would otherwise go to the second spouse. When the second spouse dies, the trust is dissolved and assets from both spouses are distributed to survivors. An exemption trust exists because the assets deposited into it are not subject to the estate tax when the second spouse passes away because they are not technically part of the estate.
References in periodicals archive ?
A will or trust may provide for the creation of subtrusts (such as an Exemption Trust or Marital Trust), which will need to be established and funded.
In Corson, 114 TC 354 (2000), King, 115 TC 118 (2000) and Hale Exemption Trust, TC Memo 2001-89, jurisdiction was already conferred on the Tax Court by a petition for a deficiency redetermination.
2 Exemption Trust and the Carolyn Baird Almand Revocable Trust.
Other Travelers Life & Annuity estate planning products available on WebStory include supplemental income, family income trust, lifetime exemption trust, credit shelter maximizer and family dynasty trust.
Eligibility of nonelecting spouse's trust to challenge innocent-spouse relief: Hale Exemption Trust, TC Memo; p.
This customized presentation system, which links directly from Travelers Life Illustration System and Travelers WinFlex, will focus initially on estate planning products, including Travelers Life & Annuity's supplemental income, family income trust, lifetime exemption trust, credit shelter maximizer and family dynasty trust.
In PLR 9630034, an IRA disclaimer was used to fully fund an exemption trust.