Doesn't an A/B trust have to be in place while both spouses are alive? Can the surviving spouse change an existing family trust into a A/B t...

Question

Doesn't an A/B trust have to be in place while both spouses are alive? Can the surviving spouse change an existing family trust into a A/B trust after the other has passed? What would be the reason for it. The assets don't exceed the tax allowance.

Answer

When both spouses are alive, they establish a trust which sets forth that division into A/B is either mandatory or allowed by disclaimer. But a disclaimer by the surviving spouse is rare.