exemption trust

Definition of "exemption trust"
  1. A trust set up to take advantage of a federal estate tax exemption upon the grantor's death; typically, excessive property is passed to the surviving spouse, shielding it from tax under the marital deduction
How to use "exemption trust" in a sentence
  1. The couple created an exemption trust to minimize their estate tax liability.
  2. His exemption trust allowed the majority of his wealth to pass to his surviving spouse free of estate taxes.
  3. The presence of an exemption trust enabled the beneficiaries to retain more of the deceased's assets.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z