What if your spouse remarries? Should the surviving spouse remarry should a restriction be placed on the transfer of property at his or her death to your children and no others? One solution might be to require that one-half of the survivor's trust goes to your children and the other half at the survivor's death to whomever the survivor chooses, without any restriction. However, there are many viable alternatives. Income From Deceased Spouse's Share of Property Subject to Tax (Trust "B", also known as the "credit shelter" or "Bypass" Trust) Trust "B" is the "bypass trust" which holds part of the assets at the death of the first spouse. This trust will hold the applicable unified credit amount for the year of death. The income from this trust may be distributed to the surviving spouse should you wish. One thing to consider is whether the survivor will spend the income. If the surviving spouse does not spend the income, this type of payment only increases the survivor's taxable estate. It is also an option to have the income of the bypass trust distributed amongst the survivor, the children or accumulated in the trust if it is not needed by the family. Please note that the income is taxable to the recipient. Thus, the overall tax liability may be decreased by directing income to lower bracket beneficiaries (e.g., to the children to be held for their educational costs). Income may also be accumulate in the trust and pass tax-free at the survivor's death. Distribution to Children If you have young children or wish to provide for your children throughout their adulthood you may do so through a Separate Share Trust. This has significant estate tax advantages. In a Separate Share Trust, the child may be given the right to receive all the income and have principal available for health, education, maintenance and support, (if required), as well as having relatively broad powers to control distribution of trust assets, either during life or at death. For assets that will be distributed to children at what ages should the property be distributed to them? A common distribution pattern amongst our clients is one-fourth at earning a degree from an accredited four year college or university or reaching age 25, one-half at reaching age 30, and the balance at 35. However, any variation can be implemented which best suits you and your children. Should you both die and leave minor children, would you like them kept together, do you want the guardian of your minor children given an allowance, would you like your children to be provided emotional support to help cope with the loss of their parents, do you want both of your families to continue to be active in their lives, do you want them to receive religious instruction, should the guardian provide them a car, a high school graduation trip, a wedding or down payment on a home? Guardians If your children are minors and you wish to appoint guardians for them as opposed to the court appointing a guardian, think about the following: If you appoint a married couple is there a preferred spouse; If not married do you have an alternate appointment; Anyone you do not want as guardian; Do you want guardians to move into your home; Do you want to pay or give a gift to the guardian. Alternate Distribution If the entire family (all your children and their issue) should be deceased, have you thought about to whom your property should be distributed? Health Care Do you want your life to be artificially prolonged if you become incapacitated and there is no hope of recovering your faculties. After your death would you wish your health care power holder to have the right to make anatomical gifts of your body?