The second-line feature of the Marital Universal Trust is the A/B tax planning format. That requires partitioning of the trust estate at the first spouse’s death by creating Trust “B” from the decedent spouse’s estate and Trust “A” for the surviving spouse. The surviving spouse has certain beneficial access to the Credit Shelter Trust (Trust “B”) - but not unlimited access.

Trust “B” will shelter the decedent spouse’s estate from estate tax and protect the decedent spouse’s estate from potential creditors of the surviving spouse.

A/B Trust planning offers post-mortem control not available in non-A/B planning. For example, an option can be chosen where Trust “B” would distribute the decedent spouse’s portion of the trust estate to his/her heirs immediately upon the remarriage of the surviving spouse (in such event).