Feb 21, 2024
At Absolute Trust Counsel, one of the pieces of advice we like to shout from the roof tops is that people need to keep their estate plans up to date! We constantly find people who fail to do so. In many cases, we can fix the challenges that arise, but sometimes, it may not be possible, and we must navigate a more difficult path. In this specific episode, we are going to focus on AB Trusts and the issues that typically arise.
It happens more than you might think - often, when a spouse dies, the widow(er) later finds out their joint trust is set up in a way that requires them to split the trust in two. This type of trust, which we call an AB Trust, was the standard practice until 2013, and it was used to avoid the need to pay estate taxes, which worked out perfectly. However, when the government gave us portability, things changed. When we uncover AB Trusts, it tends to mean that the client will spend A LOT of extra time and money managing the split and maintaining the additional trust moving forward.
So, if you’re a married couple out there who had your estate plan written before 2013, we’re talking to you! It’s time to get your estate plan out, take it to an attorney, and make sure it still works for you! And, if you’re a widow or widower who hasn’t met with an attorney yet, we highly recommend you do so now to ensure you’re not behind on taking specific actions.
“It's always better to pay your lawyer to do a plan than to pay them to fix a failure to plan afterward. Fixing is always more expensive.”
- In this episode of Absolute Trust Talk, Kirsten and Madison share everything you need to know about AB Trusts, including:
- The deeper complexities of AB Trusts, such as how they work and why we have them in the first place,
- Your options if you find out you have an AB Trust after your spouse passes,
- What filing a petition for modification of your trust looks like,
- Why petitioning the court doesn’t always work, depending on your heirs,
- The importance of talking to your attorney and keeping your trust up to date
- And much more!
Whether you’re just beginning to dip your toe into estate planning, are considering updating your trust, or have recently found out you’re stuck with an AB Trust, this podcast is for you. No matter where you are in your journey, knowledge gives you the power to take control of your assets and helps protect your family in the future. So don’t miss out! Tune in for the ultimate estate planning advice NOW!