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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

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IRA Rules