Video FAQs
Will and Trusts Law
What is a bypass trust?
A bypass trust is an irrevocable trust that is designed as a tax savings device. It derives its tax savings from the fact that it holds assets that are equal to the decedent’s exemption equivalent amount. Usually, the surviving spouse is the beneficiary of the bypass trust. It derives its name bypass from the fact that by utilizing the exemption equivalent amount it bypasses any further estate death taxes.