QTIP (Qualified Terminable Interest Property) Trust: A QTIP trust allows married couples to transfer assets to their heirs while deferring gift and estate taxes. The surviving spouse receives income from the trust during their lifetime, but the trust’s assets pass to other designated beneficiaries after their death. This type of trust is commonly used to protect inheritances intended for children from a previous marriage.

Marital Deduction Trust: This trust enables one spouse to transfer assets to the surviving spouse tax-free. The surviving spouse then has the power to determine who will inherit the trust property upon their death. A marital deduction trust can be structured to hold business property that is being reinvested or non-income producing property.

GPOA (General Power of Appointment) Trust: This type of trust gives the surviving spouse the power to decide who will inherit the trust assets. This general power of appointment means the assets can be assigned to themselves, their estate or another person. The assets in a GPOA trust are included in the surviving spouse’s estate for tax purposes.

A/B Trust: An A/B trust is jointly created by you and your spouse so both of you can take advantage of the estate tax exemption. Upon the death of the first spouse, the couple’s assets are divided into two trusts. One trust benefits the surviving spouse and the other benefits the heirs.

• Trust A (Survivor’s Trust): This part is for the surviving spouse. They can use these assets.
• Trust B (Bypass Trust): This part holds the deceased spouse’s share. It bypasses the surviving spouse’s estate, so those assets don’t get taxed again when the second spouse dies.

Survivor’s Trust: A survivor’s trust is established for the benefit of the surviving spouse after the first spouse’s death. This trust allows the surviving spouse to manage and control the trust assets during their lifetime. The trust is often funded with the deceased spouse’s assets and can provide income to the surviving spouse while preserving the principal for later distribution to other beneficiaries, such as children or other heirs. Additionally, a Survivor’s Trust may help minimize estate taxes and protect assets from creditors.

Estate Trust: An estate trust is a type of marital deduction trust designed to manage and distribute the deceased’s assets according to the trust’s terms. This trust requires the surviving spouse to choose the beneficiaries. After the surviving spouse’s death, any remaining trust principal then becomes part of the beneficiary’s estate