What is the name of your state? California
I'm interested in creating an AB Trust for my family. The AB Trust section of Nolo's Make Your Own Living Trust says after the first dies, an irrevocable trust [Trust A] is created and "The trustee shall pay to or spend for the benefit of the surviving spouse the net income of Trust A at least quarterly."
Is there some reason for mandating the surviving spouse to take the income? From my understanding, assets within the irrevocable trust can appreciate tax-free. Unless the surviving spouse needs the money, why would he/she want to take it out and report it as income?
Thank you in advance for your time and advice.What is the name of your state?
I'm interested in creating an AB Trust for my family. The AB Trust section of Nolo's Make Your Own Living Trust says after the first dies, an irrevocable trust [Trust A] is created and "The trustee shall pay to or spend for the benefit of the surviving spouse the net income of Trust A at least quarterly."
Is there some reason for mandating the surviving spouse to take the income? From my understanding, assets within the irrevocable trust can appreciate tax-free. Unless the surviving spouse needs the money, why would he/she want to take it out and report it as income?
Thank you in advance for your time and advice.What is the name of your state?