A-B Trust vs Separate Trusts

[TK1469]

Someone has suggested that for our Living Trust, that we have 2 separate trusts - how is this different from an "A-B" trust? Why would you have one over the other? Advantages of either?

HELP!

 

[ALawyer]

I like 2 trusts in many instances. Each spouse has his stuff in his or her own trust. On death the maximum tax free amount ($1 million) goes to kids but held in a spousal trust and the excess goes to the spouse.

 

[TK1469]

Reply to ALawyer

Dear ALawyer - thank you for your reply. Like most married couples - things are all owned jointly - especially the house. How is this normally handled - in the majority of cases? I have heard that one person can put the house in his - while others have said to deed the house 1/2 to each person. Your thoughts?