The provisions of the marital disclaimer trust are often contained in a will. When the surviving spouse disclaims the assets, they pass through to a trust as if the trust was the originally intended beneficiary. This technique ensures that these assets are not included in the surviving spouse’s estate when they pass away.
What is the difference between a bypass trust and a disclaimer Trust?
A Bypass Trust is mandatory and must be created after the first spouse passes away. A Disclaimer Trust differs because it is voluntary. The surviving spouse can choose to disclaim some or all of the deceased spouse’s assets and elect to create the Bypass/Disclaimer Trust. Is a Disclaimer Trust a Credit Shelter Trust?
What are the benefits of a disclaimer Trust?
To receive the benefits of a disclaimer trust, it needs to be executed properly. When one spouse passes away, the surviving spouse must disclaim assets that are passed through to another trust. This prevents that surviving spouse from paying taxes on the assets and excludes the assets from their future estate.
