Save time with our cheat sheets, fact sheets, checklists & books!

February 19, 2009

Credit Shelter Trust ( Bypass Trust)


Credit Shelter Trust

Trust  established upon the death of the grantor


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.

Referring Cite

Trust laws

Additional Helpful Information

    • PLR 9630034: relating to disclaimer using to fund trust
    • Tax Law Changes for Gifts and Estates and Trusts

Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules