A-B Trusts are joint trusts created by married couples for the purpose of minimizing estate taxes. They are formed with each spouse placing assets in the trust and naming as the final beneficiary any suitable person except the other spouse.The trust gets its name from the fact that it splits into two separate entities when one spouse dies: A is the survivor's trust, and B is the decedent's trust.When one spouse dies, their remaining assets go into A, and then that part of the asset distribution goes to B after a certain period of time (usually five years). During this time period, neither party can claim any interest in or control over the property in B unless they are named as beneficiaries themselves.
