Estate Planning for Married Couples With IRAs and 401ks
Should proceeds be paid to a bypass trust for the benefit of the surviving spouse?
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Should proceeds be paid to a bypass trust for the benefit of the surviving spouse?
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Facts A settlor set up two family trusts. One trust was created primarily for the benefit of his surviving spouse (Trust One) and the other was created primarily for the benefit of his two daughters (Trust Two). Sadly, one of his daughters passed away. This triggered a clause in the trust instrument for Trust Two which stated that, upon the daughter's death: The Trustees shall transfer her share of the Trust Fund as determined under clause 7.2… as to one half to the [Trust One], and the other half to the surviving Daughter's share of this trust fund. The unfortunate issue facing the trustee...
Facts A settlor set up two family trusts. One trust was created primarily for the benefit of his surviving spouse (Trust One) and the other was created primarily for the benefit of his two daughters (Trust Two). Sadly, one of his daughters passed away. This triggered a clause in the trust instrument for Trust Two which stated that, upon the daughter's death: The Trustees shall transfer her share of the Trust Fund as determined under clause 7.2… as to one half to the [Trust One], and the other half to the surviving Daughter's share of this trust fund. The unfortunate issue facing the trustee...