A-B TRUST
This is the trust usually created by a married couple in order to minimize their estate taxes. In an A-B trust, when one of the couple dies, it will be divided into two. It is created when each of the couple places certain assets in their trust and naming any person, except the other spouse, as the final recipient or beneficiary of the asset. The name of the trust was derived from the fact the trust will be divided into two when the first spouse dies, therefore it will be the survivor’s trust or trust A, and the decedent’s trust or trust B.
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