A Bypass Trust, or as it is sometimes called, a “Credit Shelter Trust,” Family Trust or “B Trust,” is an Irrevocable Trust designed to hold an amount that can be sheltered from death taxes.
The Bypass Trust not only preserves the deceased person’s death tax credit, but it also shelters the assets from the surviving spouse’s creditors and future spouses. The Bypass Trust can also be crafted to ensure that the assets pass to the deceased spouse’s children or family at the surviving spouse’s death, keeping them out of the hands of the surviving spouse’s subsequent spouse.
Here are some questions clients, beneficiaries, and Trustees ask:
The Bypass Trust is funded with assets that use the deceased’s estate tax and generation tax exemption. This means that when the surviving spouse dies, the exemption shelters the trust assets from tax. Further, if the trust uses Dynasty Trusts, this same protection is passed down the bloodline.
Tax shelter and asset protection.
Yes, limited only by legal obligations you may have to your spouse.
No, they are often called “Family Trusts” because the spouse and children can be beneficiaries.
Feel free to contact us for more information. Once we understand what you need, we provide you a flat rate for your estate planning documents. If you have us do additional work, such as transferring deeds or obtaining an appraisal for your business, we will bill hourly. For more than two decades Klenk Law has focused only on Estate Law. This experience allows us to help you understand the process. We make it easy for you to understand.
We listen and provide our experience where you need it.
Tremendous firm with bright, kind and tenacious people. Great representation for our family.
Excellent, knowledgeable team handled a complicated issue with superb results.
Peter Klenk made a complex subject understandable and allowed us to move forward with our estate planning. He was patient with our questions and creative in the solutions he proposed.
Always professional and very responsive. Everyone on the staff that I have worked with. I look forward to continuing our relationship.
Peter is excellent. I had a very complicated situation with my parents' estate planning and potential Medicaid needs. Peter was very knowledgeable in estate planning matters, able to define the best solution for the situation. Additionally, he was congenial and able to communicate effectively to my senior citizen parents the benefits of estate planning. He earned my trust, and more importantly, my parents' trust in a 45 mins consultation period. Highly recommend Peter. He is very easy to work with.
Let us put our expertise to work for you.
Free consultation within 24 hours.