bypass trust

(redirected from AB Trust)
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bypass trust

(US) see TRUST.
References in periodicals archive ?
He describes living trusts, probate, and estate taxes; issues like second marriages, single people, disinheriting a child, and same-sex couples; common questions related to topics like gift taxes, real estate, wills, and trust property; types of trusts; the tax-saving AB trust; choosing property to put in the trust; trustees; choosing beneficiaries; property left to minor children or young adults; preparing the living trust document; transferring property from the trust; copying, storing, and registering the document; amending the trust; what happens after a grantor dies; other aspects of an estate plan; and wills.
Although the typical bypass or AB trust strategies are less prevalent at the federal level due to the portability of the exemption, those strategies remain valid while planning to preserve the highest state exemption available between spouses.
The way around this used to be to establish an AB trust, which would keep the transferred amount out of the surviving spouse's subsequent estate.