What is an AB Trust?

An AB Trust (sometimes called A B Trust) is a type of revocable trust.
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A primary purpose of the B Trust is to save on federal estate taxes upon the death of the surviving spouse, i.e., the second spouse to die. The law changed in 2011 and again in 2017 in several big ways, making AB Trusts less beneficial and creating a Capital Gains Tax liability for many people. If you’re concerned about the potential drawbacks of an AB Trust, it’s essential to consult with an experienced estate planning attorney to discuss your options.
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