Estate planning for married couples – Have credit shelter trusts become obsolete?

Description

Abstract: A credit shelter trust (or “bypass” trust) preserves one’s estate tax exemption for eventual tax-free disposition of assets to children while first benefiting one’s spouse for the remainder of his or her life. However, some may feel that this trust is obsolete, due to the recent increase in the estate tax exemption and the availability of exemption “portability.” But, as this article explains, the benefits of this trust should be valuable for years to come. A sidebar explains why those who currently have a credit shelter trust should review the documentary language to make the most of the estate tax exemption, regardless of the amount it may be in the years ahead.