Advanced Estate Planning?Bypass Trust Funds for Married Couples
A Bypass Trust is a type of advanced estate planning technique for married couples. It is a trust fund that is commonly set up by married couples whose estates and other assets goes further than the exemptible amount allowed for estate taxes by the IRS. The Bypass Trust Fund can be set up to go around with the estate taxes upon the demise of either of the married couple in order to prevent payment of estate taxes twice since the estate can be taxed once upon the death of a spouse leaving his/her estate to the living spouse and then taxed once again upon the death of the remaining spouse. Therefore, it is termed as the Bypass Trust.
A Bypass trust can be usually set up in the form of a Revocable Living Trust or as an Irrevocable Living Trust Fund. Either of the spouse can decide to have a trust fund that cannot be revoked upon his/her death or in normal circumstances, can create a Living Trust that allows him/her to change and update the terms of the trust as needed during their lifetime.
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Married couples can usually benefit from making a Bypass Trust as part of their estate plan. They can make each other as the beneficiary of their accumulated estate. If their combined assets reach beyond the exemption allowed by the IRS, they can simply place them under the Bypass Trust. When one of the spouses dies, the estate would normally go directly to the living spouse as the beneficiary without paying estate taxes once instead of two.
However, the IRS also has certain rules that need to be followed by couples who wish to set up a Bypass Trust. An estate planning lawyer can be very helpful to create this document since the wordings and set up can be quite very tricky. It is important to make sure that the lawyer that will be hired for making this trust is well-versed and experienced or else the entire estate can be lost.
The rules of creating a Bypass Trust can also involve limited access of the beneficiary to the trust while alive. The beneficiary cannot just do whatever he/she wants with the money under the trust. Instead, the grantor has to specify a certain amount or percentage of money from the principle to be used at a certain month or period of time. Aside from this rule, there are still many more conditions that needs to be considered in the setting up process of a Bypass Trust.
The Austin Estate Planning is a firm composed of certified accountants and lawyers that are all highly knowledgeable, skilled, and experienced when it comes to basic and advanced planning for all kinds of estates and the Bypass Trust is just one of them. For more information on how the Austin Estate Planning can help you, you may look them up in their website anytime.
For more of real estate planning needs, visit <a rel=?nofollow? onclick=?javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/4908110']);? href=?http://www.austinestateplanners.com?>Austin estate planning </a>, where you can settle your assets and secure your future.
Posted by Dan on Wednesday, October 5, 2011 at 12:21 am?
Filed under Estate Plan Trusts ? Tagged with Advanced, Assets, Beneficiary, Bypass Trust, Circumstances, Couples, Death Of A Spouse, Demise, Estate Plan Trusts, Estate Planning Lawyer, Estate Taxes, funds, Irrevocable Living Trust, Irrevocable Trust, IRS, Lifetime, Lost, Married, Married Couple, Married Couples, PlanningBypass, Revocable Living Trust, Revocable Trust, Trust, Trust Fund, Trust Funds, Wordings
Source: http://www.theyellowads.com/finance/advanced-estate-planning-bypass-trust-funds-for-married-couples
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