Bypass trust

{
  "id": "MLC-T-LAW-000821",
  "term": "Bypass trust",
  "field": "Law",
  "definition": "A type of irrevocable trust, also known as a credit shelter trust or B trust, designed to minimize estate taxes for married couples. Upon the death of the first spouse, assets up to the estate tax exemption amount are transferred into this trust, bypassing the surviving spouse's estate. The surviving spouse can typically receive income from the trust, but the principal is preserved for other beneficiaries.",
  "url": "https://mlchart.com/terminology/law/bypass-trust/"
}