Exemption Trust(redirected from Exemption Trusts)
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.
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