MLchartDataset catalogue

Exemption trust

Term · Law · MLC-T-LAW-001982

A trust, also called a credit shelter or bypass trust, funded at the first spouse's death with assets up to the federal estate tax exemption amount. Placing those assets in the trust uses the exemption and keeps them out of the surviving spouse's taxable estate, while the survivor can still receive income and some principal. In an A-B plan it is paired with a second trust that qualifies for the marital deduction.

Table 1. Record
IdentifierMLC-T-LAW-001982
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-001982",
  "term": "Exemption trust",
  "field": "Law",
  "definition": "A trust, also called a credit shelter or bypass trust, funded at the first spouse's death with assets up to the federal estate tax exemption amount. Placing those assets in the trust uses the exemption and keeps them out of the surviving spouse's taxable estate, while the survivor can still receive income and some principal. In an A-B plan it is paired with a second trust that qualifies for the marital deduction.",
  "url": "https://mlchart.com/terminology/law/exemption-trust/"
}

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