Trust B uses the applicable credit available for amounts going to the grandchildren. The values in this trust will not be included in the taxable estate of the surviving spouse. The income from this trust may be available for the surviving spouse, but all remaining assets at the surviving spouse’s death will pass to the skipped generation – the grandchildren.

Trust A (ABC Trusts) | Trust C (ABC Trusts) | ABC Trusts for Generation-Skipping (Illustration) | ABC Trusts for Generation-Skipping (Definition)

 

 

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