Ab Trust in United States

Plain-English Law

Ab Trust as defined by Nolo’s Encyclopedia of Everyday Law (p. 437-455):

A trust that allows couples to reduce or avoid estate taxes. When the first spouse dies, that spouse’s half of the property held in an AB trust goes to the beneficiaries named in the trust, with the condition that the surviving spouse has the right to use the property for life and is entitled to any income it generates. This keeps the property out of the surviving spouse’s estate, reducing the likelihood that estate tax will be due when the surviving spouse dies