Tuesday, January 29, 2008
According to Ronald Lipman, Bypass trusts can reduce couples' estate taxes, chron.com, Jan. 25, 2008:
Bypass trusts are usually created by married people as a way to save estate taxes.
Under current law, everyone can leave as much as $2 million free of estate taxes at death. Married persons can also leave each other an unlimited amount of money and property with no estate taxes.
Many married couples have simple wills and leave all their property directly to the other. Although no estate taxes are owed at the first spouse's death, this leaves assets stacked up in the estate of the surviving spouse.***
A bypass trust can sharply reduce this tax.***
Not all kinds of property are appropriate for a bypass trust, and not all bypass trusts are written the same.
Also, different rules may apply to non-United States citizens.