bypass trust

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bypass trust

(US) see TRUST.
References in periodicals archive ?
The solutions offered include: living trusts, bypass trusts, QTIP trusts (lifetime and postmortem), QPRTs, intentionally defective grantor trusts (IDITs), beneficiary defective grantor trusts (BDITs), dynasty trusts, self-settled trusts, off-short trusts, gifting trusts, medicaid qualification trusts, discounting strategies to devalue assets for transfer tax purposes, "estate freezes," family limited partnerships and many more tax saving and asset protection devices.
A New Approach: Preserving the Blessing of Wealth Through Estate Planning
Note that bypass trusts can only benefit from a lump sum, which will always be taxed at 45 per cent.
Q&A
Often, some of the most valuable estate planning results are achieved not by using the big-picture items like bypass trusts, discounts, or note sales, but rather by the aggregate of a variety of seemingly less significant planning steps.
Little estate planning tips that add up
Bypass trusts may have been abandoned in some estate plans in the wake of the American Taxpayer Relief Act of 2012 (ATRA), with "some clients [...
The Magnificent Seven: Martin Shenkman leads our all-star lineup of tax experts to help you get the most for your clients this April 15
It opens up new possibilities for how you handle bypass trusts and, in that context, gifting strategies."
Estate planners back in business: after years of uncertainty with estate laws, recent legislation has advisors working again
This "deceased spousal unused exclusion amount" (DSUEA) provision gives couples an additional way to preserve both spouses' full exclusions, besides traditional credit shelter and bypass trusts.
New portability rules: a cure for incomplete state planning
Certain bypass trusts allow the trust to make an interest free loan from trust funds to the surviving spouse or partner that can be offset against the surviving spouse's estate for IHT purposes and reduce the tax liability.
A completely different type of bypass
These issues, for example, include reviewing the bypass trusts, gifting to grandchildren because of the absence of a generation-skipping transfer tax and carry-over basis issues.
No solution in sight for estate tax fix
Review current values where assets have been allocated between spouses in order to take maximum advantage of the applicable exclusion amount with bypass trusts. If appropriate, reallocate assets between spouses.
Recessionary estate planning
Clients will now be asking if they should use their traditional IRAs or Roth IRAs to fund bypass trusts. At first this may seem like a difficult question; the answer, however, may be relatively straightforward.
Tax and estate planning for IRAs after TRA '97
Bypass trusts. If a client is likely to be subject to state estate tax, but not federal estate tax, the appreciation inside a bypass trust might avoid state estate tax--but also ensure that the heirs face a capital gains tax that is higher than the state estate tax.
Estate planning and the reluctant CPA financial planner
However, Rehl notes, many couples set up bypass trusts that were written for the era of the $600,000 exemption.
Plan on it: estate planning involves many pieces. Here's a checklist of what you and your client must have to ensure an efficient transfer of assets
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