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Credit Shelter Trust ( Bypass Trust)

Last Updated March 19, 2009


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.


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