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Living Trust<br>Related Legal Information  

Living Trust
Related Legal Information

To better understand the issues relating to your legal situation or problem, our legal information and other law related facts may be of interest to you

 
 

Bypass Trust


While both spouses are alive, there can be a single Initial Bypass Trust, that is revocable and completely in their control. It is similar to, and serves all the purposes of the "simple" living Trust.
 
The Initial Bypass Trust ends at the first death, by splitting into two new Trusts ("A" and "B"). (This happens simply because there is a paragraph in the Initial Bypass Trust stating that, upon the first death, the "A" and "B" Trusts are to be created.
 
If separate husband and wife Trusts have been set up, it is only the original Trust of the deceased spouse that ends at this point, and the "A" and "B" Trusts are still created.)
 
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Is your revocable living trust income-tax friendly?

Central Valley Business Journal
Historically, the typical small estate plan for an estate under the Applicable Exclusion Amount would include a revocable living trust, whereupon the passing of the first spouse the trust would split into a “Survivor's Trust” and a “Bypass Trust.” The ...
Is your revocable living trust income-tax friendly?
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