bypass trust

(redirected from AB Trust)
Also found in: Financial.

bypass trust

(US) see TRUST.
References in periodicals archive ?
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.
Create certain kinds of trusts, such as the AB trust.
An AB Trust is a living trust which has come into vogue over the last couple of decades for married couples wishing to accomplish two objectives: 1) avoidance of the costs and delays of probate; and 2) avoidance of the imposition of estate taxes through the use of the tax credit protection trust known as the "B Trust" component of the AB Trust.