do you have a trust and which kind?

[kaneohe]

a discalimer trust is a trust where the surviving spouse can ELECT to either take all the money up to 9 months after the death of the spouse or disclaim it and let it convert in to what is basically an a/b trust at that time.

it is mostly used to get 2x the state exclusion for estate taxes.

if the trust option is selected the surviving spouse is limited to all income and 5% of principal a year but there are exceptions where more money can be taken.

mathjak.........what is the default consequence if survivor , for whatever reason, does not elect or disclaim? Pros and cons of each?

 

[mathjak107]

if the spouse doesn't accept the trust then it is business as usual. she takes all the money out and it is a done deal. everything is hers .

if she elects to split the estate then 1/2 the estate goes in to a trust and 1/2 is hers.

she gets 5% of the principal a year and all income with provisions for more money for certain things.

game plane of the trust? 2x the amount allowed by your state can pass estate tax free.

 

[kimcdougc]

We have a living revocable trust set up with an incapacity clause. Got if from Suze Ormans site. Downloaded it and filled in the blanks (after reading of course) had it notarized. Was all free as she gave out a code on her show one night to download her whole package for free .