Save time with our cheat sheets, fact sheets, checklists & books!

February 19, 2009

Credit Shelter Trust ( Bypass Trust)

Your Guide


Credit Shelter Trust

Trust  established upon the death of the grantor


Trust  established upon the death of the grantor, designed to reduce federal estate taxes, by funding the trust with amounts up to the exclusion limit  on federal estate taxes.

Strategic estate planning with retirement plans  typically include designating the trust as the beneficiary to receive only amounts that would maximize tax benefits.

The strategy usually entails funding the bypass trust when the first of a married couple dies, using the assets of the deceased.

Referring Cite

Trust laws

Additional Helpful Information

    • PLR 9630034: relating to disclaimer using to fund trust
    • Tax Law Changes for Gifts and Estates and Trusts

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


Keep Learning


The definition of a trustee depends on the capacity in which the party is serving. Trustee includes : Banks and trust companies serving as trustees

Charitable Remainder Trust (CRT)

Definition A trust where the donor transfers assets to an annuity trust or unitrust. Under a CRT , The pays the donor or another beneficiary

Be among the first to know when

IRA Rules