A form of bypass trust in which the surving spouse may disclaim property after the deceased spouses's death. The disclaimed property will go directly into the bypass trust (rather then to the surviving spouse). The surviving spouse will not have access to this property, but this property will not be subject to the estate tax on the death of the surivivng spouse.
Definition from Nolo’s Plain-English Law Dictionary
A kind of bypass trust that gives the surviving spouse the option of not splitting the trust after the first spouse's death if it's not necessary to save on estate tax. A surviving spouse may disclaim (decline to accept) some trust property; that property goes into the bypass trust.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm