Why AB Trusts Might Be the Biggest Mistake in Your Estate Plan
Why AB Trusts Might Be the Biggest Mistake in Your Estate Plan
Complex family situations and new tax rules make old strategies risky now. Many people revisit their plans and discover AB Trusts create more problems than solutions.
Why AB Trusts Might Be the Biggest Mistake in Your Estate Plan is a rigid split-trust setup. This approach locks both spouses into terms that rarely fit later life. Research shows sheltering assets can raise fees and reduce flexibility.
How these trusts work in practice Spouses divide property into two separate trusts at first death. Survivor access exists on paper, yet control and taxes often shift unexpectedly. Studies indicate shifting exemptions now make standard bypass plans less efficient.
Leaving this structure unchanged can cost time, money, and family harmony. A simple update or new tool may protect your goals better.
Q: Are AB Trusts still useful in some cases? Yes, for very large estates or specific state property rules under current law.
Q: What should married clients consider instead? Portability, revocable living trusts, and coordinated beneficiary designations often fit modern needs.
