| What’s in a name?….read on:
CLIENT QUESTION:
I did a plan with you in 2019 where I left money in a CREDIT SHELTER TRUST for the benefit of my wife (and vice versa). You told me that would put the New York exempt amount in a trust for the surviving spouse, and that amount would never be taxed, and then the survivor of us would still have their own exemption. In this way, you explained, we can be exempt from tax, up to twice the New York exemption. A friend of mine recently told me that I don’t need a CREDIT SHELTER TRUST, but rather a BYPASS TRUST. Is he right?
MY RESPONSE:
A CREDIT SHELTER TRUST and a BYPASS TRUST are the exact same thing. It is like calling me either LAWRENCE OR LARRY, but as most of you know, I prefer LAWRENCE. In fact, my license plate on my car for the last 40 years says NOTLARRY! 😊
I hope this helps! |
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