Who should be a beneficiary of your By Pass Trust?
What is a bypass trust? A bypass trust is a trust that is typically formed after the death of the first spouse in a marred couple. Initially, one may think to just to give all the assets to the surviving spouse, but then when the the survivor passes away, all the assets pile up and have a large estate tax. A bypass trust, also called a unified credit shelter trust, or an applicable exclusion trust, can hold up to $2 million in assets (2008, scheduled to increase in 2009 to $3.5 million), and the surviving spouse can withdraw assets as they need. Note, for state estate tax purposes a lower amount is required.
Who should be a beneficiary?
The above is a summary of a radio show on MMFN Money Matters Financial Network, on July 27 with host Gary Goldberg, of Gary Goldberg Planning Services, Inc. in Montebello, New York, and his guest Martin M. Shenkman, Esq. an estate planner in Paramus, New Jersey. Listen to the audio clip of this segment on www.laweasy.com.
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