Letter to Client: Drafts of Revocable Trusts with Marital Trust and Clayton Provision for Married Individual (New York)

This legal template is a letter addressed to a client and it pertains to the creation and drafting of a Revocable Trust with Marital Trust and Clayton Provision specifically for married individuals residing in New York under the jurisdiction of United States law.

A Revocable Trust, also known as a Living Trust, is a legal instrument that allows an individual (the grantor) to transfer their assets into the trust during their lifetime, while still maintaining control over those assets. The trust can be altered or revoked at any time by the grantor.

In this case, the template focuses on married individuals who wish to create a Revocable Trust for estate planning purposes. The template includes provisions for a Marital Trust, which is a trust established to provide for the surviving spouse upon the grantor's death. This provision ensures that assets are set aside to benefit the surviving spouse while still preserving the assets for other beneficiaries, such as children or other dependents.

Additionally, the template incorporates the Clayton Provision, referring to a clause designed to meet the requirements set forth in the Clayton v. Commissioner case. This provision allows the trust to qualify for certain estate tax benefits by giving the surviving spouse limited control over the assets while still being considered part of their estate for tax purposes.

Since this template is specifically tailored to New York law under USA jurisdiction, it will ensure compliance with any state-specific legal requirements or nuances related to Revocable Trusts, Marital Trusts, and the Clayton Provision.

Overall, this legal template aims to provide a framework for attorneys or individuals seeking legal guidance to draft a Revocable Trust with Marital Trust and Clayton Provision that aligns with the laws and regulations applicable to married individuals residing in New York state under USA law.