This "deceased spousal unused exclusion amount" (DSUEA) provision gives couples an additional way to preserve both spouses' full exclusions, besides traditional credit shelter and bypass trusts
It opens up new possibilities for how you handle bypass trusts
and, in that context, gifting strategies.
Certain bypass trusts
allow the trust to make an interest free loan from trust funds to the surviving spouse or partner that can be offset against the surviving spouse's estate for IHT purposes and reduce the tax liability.
More importantly, it allows American families to get this benefit without the need to prepare long estate planning documents, or establish bypass trusts
which require widows and widowers to keep their assets separated into two pools, and to file two tax returns every year.
Clients will now be asking if they should use their traditional IRAs or Roth IRAs to fund bypass trusts
Vanguard's Trust Administrators can provide expert assistance in establishing or transferring living trusts, marital and bypass trusts
, charitable trusts, and irrevocable life insurance trusts.
However, Rehl notes, many couples set up bypass trusts
that were written for the era of the $600,000 exemption.
The Marital and Bypass trusts
allow distributions of principal to Mom during her lifetime only if needed for her health, support or maintenance after considering other assets available to her.
Vanguard's Personal Trust Services can serve as fiduciary for and provide professional assistance in establishing living trusts, marital and bypass trusts
, charitable remainder trusts, and irrevocable life insurance trusts.
Depending on their purpose, these trusts are known as family trusts, credit equivalent bypass trusts
or credit shelter trusts.
estate tax stuff like bypass trusts
and qualified terminable interest property trust provisions.
Testamentary bypass trusts
are often structured this way.