bypass trust


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bypass trust

(US) see TRUST.
References in periodicals archive ?
Before the unused exclusion was portable, the exclusion amount could be sheltered from estate taxes by placing the exclusion amount in a family trust, also called a bypass trust or a credit-shelter trust.
Purdue died, he created a bypass trust, a qualified terminable interest property (QTIP) trust and a GST-exempt trust, each of which owned a portion of the LLC.
In the typical bypass trust scenario, a deceased spouse's estate funds an irrevocable testamentary trust, utilizing the decedent's available unified credit.
Sue Mong, the previous owner of the restaurant, sold the property to Gan through her Mong Family Bypass Trust.
By funding a SLAT during lifetime (as opposed to a bypass trust at death) couples are able to avoid an estate tax exclusion "discrepancy," saving hundreds of thousands of dollars in state estate taxes, where applicable.
To ensure that the DS held assets sufficient in value to fully fund the bypass trust (thereby fully utilizing the estate and gift tax exemption of the DS), couples were often forced to divide and retitle their assets so that each spouse owned assets having a FMV at least equal to the estate and gift tax exemption.
It might have been best in the past to pack equities into the bypass trust to maximize estate tax savings," said Shenkman.
It is worth considering how best to preserve that main asset for when it is inherited and a spousal bypass trust can be an effective method of reducing tax liabilities.
Portability of unused exemption: Under the law as it existed in 2009, in order to take full advantage of a married couple's combined $7 million estate tax exemption, the first spouse's exemption amount was generally held in a "credit shelter" or bypass trust, thus complicating ownership arrangements and legal documents.
However, accumulated income and future appreciation within a bypass trust will be excluded from the gross estate upon the death of the second spouse;
A charitable trust, for example, becomes a "capital gains bypass trust," and an ILIT is described as "a children's trust.
This trust is also referred to as a bypass, unified credit, credit shelter, credit amount, or credit equivalent bypass trust.