A marital trust takes advantage of the federal marital deduction, which allows both spouses to pass unlimited assets to one another without federal estate tax under current law. A unified credit trust utilizes the applicable estate tax exclusion amount, which allows an individual to pass a specified amount of assets to a beneficiary free of federal estate tax.

Characteristics include:

• Defer estate tax until the death of the second spouse. It is not designed to reduce estate taxes.

• Customize to reflect your particular situation, even providing for beneficiaries in addition to your spouse, unlike a marital trust.

• A properly arranged unified credit trust can shelter assets from estate tax at the surviving spouse's death.

• Professional asset management; leverage the marital deduction and applicable estate tax exclusion.

• Distribute assets according to their wishes and not according to state intestacy law.

• Help individuals provide for spouses and children while reducing estate taxes and utilizing applicable exclusion amounts.