What is a survivors trust?

A survivor's trust, also known as a marital trust, is a type of trust designed to provide financial security to a surviving spouse after the death of the other spouse. This type of trust is commonly used in estate planning to help ensure that both spouses' assets are properly distributed and protected after one of them passes away.

In a survivor's trust, the assets are typically placed into the trust by the deceased spouse, and the surviving spouse becomes the beneficiary of the trust. The terms of the trust dictate how the assets will be managed and distributed to the surviving spouse, and may include provisions for managing the assets and ensuring they are used to provide for the spouse's needs.

One of the key benefits of a survivor's trust is that it can help protect the assets from creditors or other parties who may seek to make claims on them after the death of one of the spouses. Additionally, this type of trust can also help to reduce or eliminate estate taxes, which can potentially save a significant amount of money for the beneficiaries.

Overall, a survivor's trust can be an effective tool for estate planning, providing financial security for surviving spouses and helping to ensure that assets are properly distributed and protected after the death of a loved one.