ABC Trusts
An ABC Trust is a combination of trusts meant for married couples with an estate worth more than the estate tax exemption amount. At the death of a spouse, an ABC Trust not only separates the survivor spouse’s assets from the late spouse’s assets but also divides the late spouse’s assets into the amount of assets allowed by the estate tax exemption and the amount that exceeds the allowed exemption. An ABC trust arrangement allows you to defer estate taxes on your assets until the death of the surviving spouse while protecting the inheritances of children from prior marriages.