What is a marital deduction trust?
A marital deduction trust is a type of trust used in Washington State inheritance law. It allows a married couple to pass assets to their heirs without having to pay estate tax. The trust must be set up during the lifetime of the spouses and it allows the surviving spouse to receive income from the trust during his or her lifetime. The surviving spouse can use the income for maintenance, support, health care, and education expenses. After the death of the surviving spouse, the trust assets are distributed to the heirs. The trust can be structured to provide estate tax savings, particularly if the estate exceeds the federal estate tax exemption amount. An important feature of the marital deduction trust is that it allows the surviving spouse to access the trust principal if needed. This is an important estate planning tool that can help married couples in Washington State protect their assets and pass them to their heirs in a tax-advantaged manner.
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