Boosting your estate planning power – How to “supercharge” a credit shelter trust

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Abstract: While high estate tax exemption amounts combined with portability of exemptions between spouses has reduced the effectiveness of credit shelter trusts in some cases, they continue to offer significant benefits, particularly for high-net-worth taxpayers. This article discusses how a credit shelter trust works and how a new kind of trust can “supercharge” it. But, as a sidebar explains, it’s necessary to avoid running afoul of the reciprocal trust doctrine in the process.