How to Create a Living AB Trust in Florida
If you and your spouse are approaching the last decade or so of your lives and live in Florida, you may wish to create a living AB trust to protect your estate from taxes. The living AB trust is particularly useful if one or both of you have children from earlier marriages whom you wish to inherit your estate after your surviving spouse no longer needs it. The AB designation means there are two living spouses when the trust is created. Each has a designated amount that they can exempt from estate taxes in their living trust.
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Things You'll Need
- Husband's power of attorney
- Copy of husband's will
- Wife power of attorney
- Copy of wife's will
- Bank and estate records
- Durable family power of attorney
Instructions
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Find and set up an appointment with a licensed Florida attorney with experience in creating living AB trusts.
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Decide which spouse will be A, often the husband or the spouse with the largest estate.
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Designate any right of invasion for spouse B, upon the death of spouse A. This may be a small percentage of the principal on spouse A's estate, including, or in addition to, payment of living expenses.
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Make certain that wills and powers of attorney are updated to reflect the "pour-over" that happens with a living AB trust in Florida, with each spouse retaining their own exempt amount in trust. This will mean that double the amount that they would have been able to leave heirs will be available, tax-free, upon the death of the B spouse.
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