Four Reasons You should have a By-Pass Trust

1. Tax Savings - A trust established by the first spouse to die effectively doubles the estate tax exemption. For 2009 the Federal exemption is $3.5 million and the state exemption is $1 million in Maryland.2. Keep the money in the family - The first spouse to die leaves the money for the survivor to use according to standards such as health, maintenance, and support. Ultimately, the money passes to their children. The survivor's new spouse cannot inherit the trust money and does not have any right to the trust. 3. Administration - A trustee provides a check on how the trust assets are spent and provides a means to dispense funds in the event of a disability. 4. The trust can contain provisions to protect the assets from creditors.