Legal Question in Wills and Trusts in Michigan

Re: Separate Trusts vs A-B Trust

Frankly, this is a no brainer of a question for any competent expert estate planner. If you want the benefit of estate tax planning you both need separate trusts each containing a Marital and Family (credit Shelter) Trusts or as you referred them as an "A/B Trust".

I believe it is a violation of the Michigan attroney standard of practice (malparactice to do a common/joint A/B Trust. That is not to say that a common trust is impossible but it is much more comnplicated.

I will try to be brief and expalin why. If you should like to talk about this further you may call me 248-647-4440. You can also check my credentials at www.brmmlaw.com. There is no taxes for lifetime and death transfers between spouses. Both spouses have a current exemption of $1 million. If the assets are in joint ownership or "point to each other upon the death of the first spouse, the survivor only has their own exemption to use, wasting the first spouses. By establishing 2 trusts you can use both coupons of the 1 million. For a 2M estate this save approx $424K.

Remember estate planning is much more than tax planning, it needs to come from the heart and address your wishes. It is also lifetime disability planning as well as end of life care decisons.

Here are a few of my credentials. I would extend to you a complimentary consultation.

Don L. Rosenberg is a senior partner in the law firm of Barron, Rosenberg, Mayoras & Mayoras, P.C. and has been practicing for over twenty years.

Don's practice is limited to specializing in issues concerning disability, estate, business, long term care, nursing home and special needs planning.

Member of National Academy of Elder Law Attorneys and is listed in the Academy's Experience Registry in the areas of Planning for Disabilities, Estate Planning, Estate and Gift Tax Planning, Decedents (Probate) Estate Administration, Guardian/Conservatorship and Medicaid Planning.

Member of The Financial and Estate Planning Council of Metropolitan Detroit.

Recently featured on television station, WDIV, by Senior Reporter, Dell Warner, in a story concerning Elder Law.

Recently quoted in the March 6, 2000 of issue of Forbes magazine on page 178 in the article titled, "If It Sounds Too Good..." on the topic of trusts that are to good to be true.

Selected Honored Member of the National Directory of Who's Who in Executives and Professionals, 1995, Who's Who in American Law, 1998-1999 and Who's Who, 1998 Honored and Distinguished Lawyers as well as Strathmore's Who's Who Millennium 2000-2001.

Don L. Rosenberg

Re: Separate Trusts vs A-B Trust

Hello, I have received a copy of your inqiry regarding an estate plan and A/B trusts. You really should speak to an attorney about this. An A/B trust is really 2 trusts. The trusts basically ensures that both husband and wife have estates in their individual names that take advantage of the maximum tax free transfers instead of just one estate being able to do so. These are estate planning techniques that are used in estates such as yours. Feel free to contact me if you would like to discuss this in greater detail. John C. Talpos (http://www.Mich-Lawyer.com)