What is a marital trust?

A marital trust is a trust designed to pass assets to a surviving spouse while deferring estate taxes until the second spouse dies. The surviving spouse typically receives income from the trust during their lifetime, and the remaining assets pass to other beneficiaries afterward. It takes advantage of the unlimited marital deduction, which lets spouses transfer assets to each other tax-free. It's often paired with other trusts in a coordinated estate plan.