Trust A is a popular phrase used to describe a type of marital trust that gives the spouse a life estate and general power of appointment over the trust estate. This trust is usually established in a will or revocable living trust in order to take advantage of the marital deduction at the death of the first of two spouses. 

 

At the first death, property is placed in a trust in a way such that the property is subject to taxation at the spouse's death. The spouse usually has access to some or all of the trust assets, in addition to receiving income from the trust. The trust allows management of the assets by a trustee designated by the grantor (the first to die). Often, this provides the grantor peace of mind knowing that the spouse is provided professional management of the assets. 

 

Benefits of Trust A:

• The surviving spouse receives all income generated in Trust A.
• The surviving spouse may be able to withdraw any or all of the total principal of Trust A.
• The surviving spouse may be able to completely terminate Trust A at any time.
• The trust allows management of the assets by a trustee designated by the grantor (the first to die). Often this provides the grantor peace of mind knowing that the spouse is provided professional management of the assets.

 

 

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