Revocable Trust For Married Individual: Marital Trust & Clayton Provision

This legal template is designed for married individuals who wish to establish a revocable trust as a part of their estate planning strategy. The template specifically includes provisions for both a Marital Trust and a Clayton Provision.

A Marital Trust is a trust that is created for the benefit of the surviving spouse upon the death of the grantor. The purpose of this trust is to provide financial support and protection for the surviving spouse, ensuring that they have access to the income and assets held within the trust during their lifetime. The terms and conditions of the Marital Trust can be customized according to the specific needs and preferences of the individuals involved.

On the other hand, a Clayton Provision refers to a provision within the trust document that addresses the potential disqualification of the trust assets from receiving a step-up in basis upon the death of the grantor. This provision is often included to protect the beneficiaries from adverse tax consequences. The Clayton Provision may outline certain actions or circumstances that would trigger the disqualification and provide alternative directions on how the assets should be distributed or managed to avoid negative tax implications.

Overall, this legal template provides a comprehensive framework for married individuals looking to establish a revocable trust that incorporates both a Marital Trust and a Clayton Provision. By utilizing this template, individuals can ensure that their assets are effectively managed and distributed in line with their wishes, while also minimizing potential tax burdens on their loved ones.