Estate trust
Certified Financial Planner glossary · Certified Financial Planner
Definition
A marital deduction trust whose remainder is payable to the surviving spouse’s estate.
Estate trust in plain English
A couple wants the marital deduction now but does not want the surviving spouse locked into a lifetime income-only trust with remainder to kids. Estate trust is a marital deduction trust whose remainder is payable to the surviving spouse's estate. That structure can qualify for the marital deduction while still letting the survivor's own estate plan finish the distribution story. Do not confuse it with a QTIP, which typically keeps remainder fixed for other beneficiaries. If the remainder lands in the survivor's estate, you are looking at an estate trust pattern.
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