A trusts lawyer in Montgomery, Texas can work with you to determine your best estate planning options. One device that is used quite often in wills is the bypass trust. This instrument is used to plan long term for the disposition of property in an estate. Its purpose is to prevent what otherwise may amount to double taxation of estate property. This can be very useful for married couples. A new provision in 2013 largely eliminates the need for a bypass trust in many cases, but as will be seen such a trust can still be valuable.
Do You Need a Bypass Trust?
Your trusts lawyer in Montgomery, Texas will review your needs and determine whether a bypass trust is useful in your case. A bypass trust is valuable for most people who are married or have other family members who stand to inherit the estate. Bypass, or “B” trusts, are often included in a will as a matter of course.
The trust can help the survivors save on estate taxes. For this to occur, a certain amount of the joint marital estate funds the trust. The assets in the trust are no longer available except for certain yearly amounts that can be distributed by the trustee. When the first spouse passes, the trust in effect bypasses any taxation that would otherwise result. Taxes would then be due only on the passing of the second spouse.
A Trusts Lawyer Explains Changes in Bypass Trusts
Previously, if a bypass trust was not explicitly set up the estate tax exemption fell away upon the death of the first spouse. Recent changes eliminate the need to include a bypass trust in the will. Now the first spouse's tax exemption amount can be used by the surviving spouse. This portability of the bypass trust requires that the surviving spouse complete the necessary paperwork with the IRS.
Your trusts lawyer in Montgomery, Texas will tell you, however, that a bypass trust may still be a useful instrument to include in your estate planning. Those with fairly large estates, for instance, should consider such a trust in order to avoid taxes on asset growth. A bypass trust is also useful for a surviving spouse who remarries.
Speak with a Trusts Lawyer in Montgomery, Texas for Assistance
If you are considering a bypass trust, or need help with another estate planning matter, a trusts lawyer in Montgomery, Texas at Peterson Law Group can help. We will provide you with the highest standard of legal assistance. Call today to arrange a consultation at 936-337-4681.