A trust designed to help couples gain full use out of each spouse's applicable exclusion amount (AEA) is the _____ trust.

Question

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A credit shelter trust, also known as a bypass trust, is designed to help spouses maximize the use of their applicable exclusion amount by sheltering assets from estate taxes. When the first spouse dies, their assets go into the trust which can be used to provide for the surviving spouse while not being included in their estate when they die. This allows both spouses to take full advantage of their individual AEA.

A Trust Designed to Help Couples Gain Full Use Out