Cookie is updating her estate planning and wants to write a legal document that will allow all of her assets to go to her spouse except for a certain amount that will be set up in a trust.The trust (plus interest)can provide her spouse lifelong income that will not be taxed.She is writing a(n)

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An exemption trust will (also known as a bypass trust, credit shelter trust, or A/B trust) is a legal document that allows a person to leave a certain amount of assets in trust for their spouse's benefit without incurring estate tax. This type of trust is commonly used in estate planning to take advantage of the unified credit, which allows an individual to give away a certain amount of assets during their lifetime or at death without paying taxes. By using an exemption trust will, Cookie can provide for her spouse's financial needs while ensuring that a portion of her estate goes to her chosen beneficiaries.

Cookie Is Updating Her Estate Planning and Wants to Write