Credit Shelter Trust - CST
This type of trust is also referred to as an "AB Trust".
In certain circumstances, such as the need to fund healthcare expenses, the surviving spouse may even tap into the principal of the trust assets, not just their generated income. When the surviving spouse eventually dies, the assets are transferred wholly to the beneficiaries (children) without any estate taxes levied. This can amount to significant tax savings and can be very valuable, especially considering that the surviving spouse essentially maintains full use of the assets while they are in the trust anyway.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
credit shelter trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. credit shelter trust … Law dictionary
credit-shelter trust — /ˌkredɪt ˌʃeltə trʌst/ noun money put in trust in order to escape federal estate tax COMMENT: This type of trust is where someone leaves half his estate to his wife and puts the other half into a trust. After his death, his wife can continue to… … Dictionary of banking and finance
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trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… … Black's law dictionary
trust — /trʌst / (say trust) noun 1. reliance on the integrity, justice, etc., of a person, or on some quality or attribute of a thing; confidence. 2. confident expectation of something; hope. 3. confidence in the ability or intention of a person to pay… … Australian English dictionary
United States trust law — Introduction Most law regulating the creation and administration of trusts in the United States is now statutory at the state level. In August 2004, the National Conference of Commissioners on Uniform State Laws created the first attempt to… … Wikipedia
Marital Trust — A fiduciary relationship between a trustor and trustee for the benefit of a surviving spouse and the married couple s heirs. Also called an A trust, a marital trust goes into effect when the first spouse dies. Assets are moved into the trust upon … Investment dictionary
bypass trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bypass trust … Law dictionary
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No-kill shelter — A kill shelter is an animal shelter where animals are euthanized if they are too sick to be treated or too aggressive to be suitable for adoption or due to lack of shelter space. No kill shelters reject euthanasia as a means of population control … Wikipedia