For more than a decade, a common estate planning approach has been to bequeath a couple's assets up to the amount of the federal or state estate-tax exemption to a bypass trust after the first spouse dies, leaving the remaining assets outright to the surviving spouse (or to some form of a marital trust). Later, upon the death of the surviving spouse, assets within the bypass trust would go directly to the children, bypassing the surviving spouse's estate and thereby saving estate taxes.
All Financial Planning articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.