A credit shelter trust is used to save estate tax by using the unused unified transfer tax (UTT)credit.

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A credit shelter trust, also known as a bypass trust or a family trust, is used to save estate tax by using the unused UTT credit of one spouse after their death to pass assets to their heirs without being subject to estate tax. This allows the second spouse to utilize their own UTT credit as well, effectively doubling the amount of assets that can be passed on free of estate tax.

A Credit Shelter Trust Is Used to Save Estate Tax