With a Spousal Gift Trust, you irrevocably transfer assets (typically up to $260,000, but no more than $1 million) to a trust of which your spouse is trustee (or co-trustee) and beneficiary. In addition you can make life time gifts of $13,000 per year to your spouse in this trust. Your children and other descendants can also be beneficiaries during your spouse's lifetime, or they can be remainder beneficiaries after the death of your spouse. You can also give your spouse the power to appoint, at death, the trust assets for your benefit during your lifetime if your spouse predeceases you.
Both spouses can create similar trusts for each other's benefit, and thereby obtain the asset protection and estate tax benefits, but the trusts cannot be identical in all respects.