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John J. Kamrar, Attorney at Law, P.S.

Estate Planning and Administration

Blog

Bypass Trusts

Posted on August 24, 2012 at 5:39 PM
Many practitioners are unaware of the use of bypass trusts for married couples for purposes other than estate tax avoidance.  A well-crafted bypass trust is able to avoid depletion of the decedent's estate by the surviving spouse in a number of instances.  Among those are nursing home expenses and spenddown.  A surviving spouse's liability for tort or contract cannot affect the bypass trust of the decedent.  This technique is not limited to use by the very wealthy---it protects estates for any citizens who wish to assure that their heirs receive their inheritance, rather than having the funds spent on government reimbursement for services, or on judgment creditors.

Categories: Use of Trusts

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12 Comments

Reply Adam Henry
8:08 AM on November 17, 2012 
Lovely expose!! I'm delighted to know about the Bypass Trusts from this post which has really impressed me. Thanks for this nice allocation and carry on..
Reply Heath Davilla
10:10 AM on November 19, 2012 
I got your post about the Bypass Trusts as well. It is really a informative sharing to helps people to know about this issue. Thanks and carry on..
Reply Kutti Machine
12:04 PM on August 21, 2013 
A surviving spouse's liability for tort or contract cannot affect the bypass trust of the decedent.
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Among those are nursing home costs and spenddown. A surviving life partners risk for tort or contract can't influence the sidestep trust of the decedent.
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