Definition - What does Marital Trust mean?
A marital trust is a trust set up by one partner in a marriage that allows their assets to be transferred to their spouse after their death. They often include life insurance policies.
Marital trusts allow the parties to circumvent the estate and gift taxes that would normally apply to these asset transfers.
Marital trusts are also known as A trusts.
Insuranceopedia explains Marital Trust
Marital trusts are an essential part of estate planning for many people. Avoiding the estate tax through trusts enables people to pass on the maximum possible amount of wealth to their beneficiaries.
Another key benefit of marital trusts is that they allow people to ensure that their assets are passed on to their children. People who worry, for instance, that their spouses will remarry and not give a significant portion of the assets to their children can establish such a trust.