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Klenk Law

Credit Shelter Trusts

What is a Credit Shelter Trust?

A Credit Shelter Trust, or as it is sometimes called, a “Bypass Trust,” Family Trust or “B Trust,” is an Irrevocable Trust designed to hold an amount that can be sheltered from death taxes.

What is the Purpose of a Credit Shelter Trust?

The Credit Shelter 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 Credit Shelter 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 next spouse.

Typical Estate Questions About Credit Shelter Trusts:

Here are some questions clients, beneficiaries, and Trustees ask:

How does the Credit Shelter Trust Protect a Beneficiary from Death Taxes?

The Credit Shelter Trust preserves the deceased person’s estate and generation-skipping exemption, preventing the trust assets from being included in the surviving spouse’s and children’s taxable estate.

What are the Pros of the Credit Shelter Trust?

Asset protection, tax avoidance and the ability to keep assets within the family.

What are the Credit Shelter Trust Cons?

The trust has a separate tax ID number, so must file a separate tax return.

Can I Name any Beneficiary to the Credit Shelter Trust?

Yes, you are not limited to the family.

Can only a Spouse be a Beneficiary of a Credit Shelter Trust?

No, a Credit Shelter Trust often includes the children.

Reasonable Prices | Years of Experience | We Make Credit Shelter Trusts and Estate Planning Easier

If you have any questions about Credit Shelter Trusts or any other estate planning topics, please contact us to schedule a free consultation. For more than two decades Klenk Law has focused only on Estate Law. We’ve seen it all, and this experience allows us to explain complex estate law and planning techniques clearly and concisely. We make it easy for you to understand Credit Shelter Trusts so you can make the best decisions for yourself and your family.

What Our clients are saying

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Peter and his associates were a pleasure to work with. He explained the process clearly and provided assistance nearly instantaneously. Highly recommended for trusts-and-estates-related needs!

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I'm totally satisfied with Klenk Law. Peter has a great legal mind with the personality of the guy next door.

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Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.

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I have worked with Peter Klenk & his associates for some time now and I have found them to be ultra-qualified, knowledgeable and diligent about their work. I highly recommend them.

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Peter came highly recommended by a close friend to do our estate planning. We have been putting off for years. He is knowledgeable, professional and easy to work with.

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