| Legal, Taxes & Wills :: #6081 By Gary from Burlington, IA USA.
How to cut some Estate taxes Both spouses put their property into A Bypass or credit shelter trust (AB trust). When one spouse dies, let's say the husband, his half of the property goes to the beneficiary named in the trust, often grown children. A condition is that the wife can use that property for life, including any income it creates. When she dies, that part of the property goes directly to the children without being taxed in her estate. That means the wife's taxable estate is half of what it would have been if she had inherited directly from her husband.
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