Bypass Trust

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Dictionary Says

Definition of 'Bypass Trust'

An estate-planning device used to pass down assets after death without subjecting them to the estate tax. A bypass trust is a type of irrevocable trust and is most commonly used to pass assets from parents to children at the time of the second parent’s death. It is structured so the children will not have to pay estate taxes on those assets in excess of the current estate tax exemption. 
Investopedia Says

Investopedia explains 'Bypass Trust'

One condition of a bypass trust is that the recipient must have restricted rights to withdraw principal. The person who creates the trust specifies how much money can be withdrawn and for what purpose. The grantor also limits the recipient’s ability to distribute trust assets upon his or her death by providing guidelines for how those assets will be distributed. Bypass trusts should be prepared by a lawyer because the IRS will not honor them if they are not prepared properly. An improperly constructed bypass trust can cost the heirs thousands if not hundreds of thousands or millions of dollars in estate taxes.

Also known as a credit shelter trust.
Search results for

'Bypass Trust'

  • Estate Planning: Marital And Non-Marital Trusts | Investopedia

    http://www.investopedia.com/university/estate-planning/estate-planning7.asp
    ... Non-Marital Trusts A non-marital trust, also known as a bypass trust or credit shelter
    trust, is a type of trust that also allows you to take care of your ...

  • CFP Study Guide - Financial Planning: Process and Rules ...

    http://www.investopedia.com/exam-guide/cfp/financial-planning-process-rules/default.asp
    ... institutions: Banks; 3.6 Brokerage and Insurance Companies; 3.7 Mutual fund
    and Trust Companies. 4. Education Planning: 4.1 Introduction; ...

  • CFP Study Guide - Principles of Risk and Insurance - Introduction ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/default.asp
    ... institutions: Banks; 3.6 Brokerage and Insurance Companies; 3.7 Mutual fund
    and Trust Companies. 4. Education Planning: 4.1 Introduction; ...

  • CFP Study Guide - Principles of Risk and Insurance - The Risk ...

    http://www.investopedia.com/exam-guide/cfp/principles-of-risk-and-insurance/cfp2.asp
    ... institutions: Banks; 3.6 Brokerage and Insurance Companies; 3.7 Mutual fund
    and Trust Companies. 4. Education Planning: 4.1 Introduction; ...

  • CFP Study Guide - Property, Casualty and Liability Insurance ...

    http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/default.asp
    ... institutions: Banks; 3.6 Brokerage and Insurance Companies; 3.7 Mutual fund
    and Trust Companies. 4. Education Planning: 4.1 Introduction; ...

  • CFP Study Guide - Property, Casualty and Liability Insurance ...

    http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/cfp4.asp
    ... institutions: Banks; 3.6 Brokerage and Insurance Companies; 3.7 Mutual fund
    and Trust Companies. 4. Education Planning: 4.1 Introduction; ...

  • Pick The Perfect Trust

    http://www.investopedia.com/articles/pf/08/trust-basics.asp
    ... on the use and disposition of such assets, a living trust can offer ... Protection against
    incapacity of the grantor and beneficiary; Help to bypass probate delays ...

  • Bypass The Euro With Switzerland

    http://stocks.investopedia.com/stock-analysis/2010/Bypass-The-Euro-With-Switzerland-EWL-FXF-SWZ0519.aspx
    ... Bypass The Euro With Switzerland. ... Investors also have the ability to play the safe
    haven Swiss Franc via the CurrencyShares Swiss Franc Trust (NYSE:FXF). ...

  • Skipping-Out on Probate Costs

    http://www.investopedia.com/articles/04/121304.asp
    ... trusts or inter-vivos trusts were invented to help people bypass the probate process.
    Unlike the property listed in your will, the property in a trust is not ...

  • Refusing An Inheritance

    http://www.investopedia.com/articles/06/RefuseInheritance.asp
    ... Qualified Disclaimers If a person has not set up an exemption trust prior to ... The
    assets would then pass to the contingent beneficiary, bypass the estate of the ...

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