Current Estate
Marital Trust
Marital Trust funded with
all assets
above the amount allocated to the Family Trust
above the amount allocated to the Family Trust
Beneficiary:
Surviving Spouse
Beneficiary Receives:
• All of the net income
• Some or all of the trust principal for
health,
education and maintenance
education and maintenance
• Spouse has limited power to appoint
principal to children or descendants
principal to children or descendants
Family Trust
Family Trust funded with
all assets
equal to Decedent’s available “coupon” amount
equal to Decedent’s available “coupon” amount
Beneficiary:
Surviving Spouse and Descendants
Beneficiaries Receive:
• Some or all of the net income
• Some or all of the trust principal for
health,
education and maintenance
education and maintenance
• Spouse has limited power to appoint
principal to children or descendants
principal to children or descendants
The Marital Trust-Family Trust Estate Plan
Diagram
Current Estate is Divided into 2 Parts
Children’s Trust
Assets can be held in this
Children’s Trust
until the children become a certain age, or later
until the children become a certain age, or later
The Trustee may have
discretion to pay any amount at any time
for the children’s benefit
for the children’s benefit
Included in
Surviving Spouse’s Estate
Surviving Spouse’s Estate
No Federal Estate Tax
Surviving Spouse’s Death