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A fiduciary relationship between a trustor and trustee for the benefit of a surviving spouse and the married couple's heirs. Also called an A trust, a marital trust goes into effect when the first spouse dies. Assets are moved into the trust upon death and the income generated by the assets goes to the surviving spouse. Under some arrangements, the surviving spouse can also receive principal payments.
All of the marital trusts described have a common thread: the value of the assets held by each trust will be included in the gross estate of the surviving spouse. In other words, bequests to these trusts do not eliminate federal estate tax, but instead merely defer it.