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Unlike a QTIP trust, the assets of the credit shelter trust are not included in the beneficiarys gross estate and, as a result, are not subject to estate tax at the beneficiarys death (in other words, the assets bypass the beneficiarys estate).
Credit Shelter Trusts are a popular tool for estate planning, and there are two main types of CSTs, the Marital Gift Trust and the Qualified Terminable Interest Property Trust (QTIP). Both of these Trusts preserve wealth via estate tax exemptions.
The B and C trusts benefit from the federal tax exemption. The B trust is exempt from state taxes. The C trust postpones state taxes until the surviving spouse passes away. The A trust does not benefit from any exemptions.
Credit shelter trust (CST) (also called an AB trust or a bypass trust) is a tool used by well-off married individuals to legally maximize their estate tax exemptions. The strategy involves creating two separate trusts after one spouse passes.
Credit shelter trusts are also commonly known as bypass, family, or exemption trusts.
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The marital disclaimer trust is similar to a credit shelter trust (CST): Assets placed in the trust are generally not included in the estate of the surviving spouse, so that the assets may pass tax-free to the remaining beneficiaries when the surviving spouse dies.
No. Credit Shelter Trusts are a popular tool for estate planning, and there are two main types of CSTs, the Marital Gift Trust and the Qualified Terminable Interest Property Trust (QTIP). Both of these Trusts preserve wealth via estate tax exemptions.
Credit shelter trust (CST) (also called an AB trust or a bypass trust) is a tool used by well-off married individuals to legally maximize their estate tax exemptions. The strategy involves creating two separate trusts after one spouse passes.

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