A-B Trust

A trustAn arrangement in which property interests are legally held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). which splits into two trusts when the first spouse dies. One of the trusts takes just enough of the decedent’s assets so that the estateThe assets and liabilities left behind by a decedent. can take advantage of tax credits, with the goal of minimizing estate taxes.