A-B Trust

An A-B trust is a type of trust that is used to divide assets between two beneficiaries. The A-B trust is often used to provide for a surviving spouse and children. The A-B trust can be used to provide for the surviving spouse's income needs and to protect the assets from the surviving spouse's creditors. The A-B trust can also be used to provide for the children's education and other needs.

The A-B trust is created by a grantor who transfers assets to the trust. The grantor can be the settlor of the trust, or the grantor can transfer assets to the trust for the benefit of another person. The A-B trust has two separate trusts: the A trust and the B trust. The A trust is for the benefit of the surviving spouse. The B trust is for the benefit of the children.

The A trust is funded with the assets that the grantor wants to provide for the surviving spouse's income needs. The A trust can also be funded with assets that the grantor wants to protect from the surviving spouse's creditors. The A trust is usually irrevocable, which means that the grantor cannot change the terms of the trust after it is created.

The B trust is funded with the assets that the grantor wants to provide for the children's education and other needs. The B trust can be either revocable or irrevocable. If the B trust is revocable, the grantor can change the terms of the trust at any time. If the B trust is irrevocable, the grantor cannot change the terms of the trust after it is created.

The A-B trust can be a useful tool for providing for a surviving spouse and children. The A-B trust can help to protect the assets from the surviving spouse's creditors and can provide for the children's education and other needs.