FAQ Friday: Family Trust

On Friday, August 6th at 11 a.m. EST, Mr. Berger discusses what a family trust is, why it's needed and what is included.

A family trust is also known as a bypass trust. This has an estate tax exemption. $5 million or 11.7 million federal. Older trusts that are mention

This is the next layer of a trust as a part of a revocable living trust or a testamentary trust as part of the Last Will and Testament.

The money goes to a family trust as benefit of the surviving spouse. When the first spouse passes, there is an adjustment to a lower tax bracket. There will be no gift tax when money passes there.

Use the entire exemption when applicable because laws are always changing.

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