John J. Kamrar, Attorney at Law, P.S. - Estate Planning and Administration
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Bypass Trusts

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Bypass Trusts

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.

59 Comments to Bypass Trusts:

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Adam Henry on Saturday, November 17, 2012 1:08 AM
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..
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Heath Davilla on Monday, November 19, 2012 3:10 AM
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..
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A surviving spouse's liability for tort or contract cannot affect the bypass trust of the decedent.
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Aaron Joy on Tuesday, November 25, 2014 10:31 AM
John, I would NOT expect you to remember my name, but I went to BHS (class '96) and you came to a Key Club meeting...later I had an exhibit on Blossom Time/Tulip Festival at the WMHA you came with your mom .... and I mowed Eleanor P.'s lawn. Before graduating I found an interest in law and we sat for 20 minutes as I asked you questions about your work. I didn't pursue a career in law as the money wasn't there for school, instead spending 14 years travelling the globe and doing other things and am now in Portland Maine (say hi to Eleanor for me) ... but I'm taking the LSAT in 2 weeks and applying to the UofME Law School for September start if I get accepted ... I'm close to 40, it's a horrible brick wall but I figured it's now or never and I have to at least try. You come to mind often. I never forgot your enthusiasm for your job. Would have done this over e-mail but couldn't find it on your site.
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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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