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.
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.
Here are some questions clients, beneficiaries, and Trustees ask:
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.
Asset protection, tax avoidance and the ability to keep assets within the family.
The trust has a separate tax ID number, so must file a separate tax return.
Yes, you are not limited to the family.
No, a Credit Shelter Trust often includes the children.
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.
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
"I worked for Peter Klenk for 4 wonderful years. I can’t speak highly enough of everyone at the firm. Everyone truly cares about their clients and has a strong sense of responsibility to get things done right. I would highly recommend Klenk Law!"
Flora Novick
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.
Affable...yet surprisingly cerebral estate planning atty. High marks all the way around.
Excellent, knowledgeable team handled a complicated issue with superb results.
Mr. Klenk, quickly understood the circumstances presented and provided clear and concise advice. This advice provided me with the information I required to progress the case to my advantage.
Everything about my experience was a 10+! Peter and his staff made what I thought would be a difficult process easy and understandable. Every detail was handled correctly. No other firm could possibly do better than Klenk Law!
Let us put our expertise to work for you.
Free consultation within 24 hours.