BY-PASS
TRUSTS
While the current
Federal estate tax law provides for a $5,000,000 exemption which can be carried
over to a spouse the New York Estate tax law has only a $1,000,000 exemption
and does NOT permit you to carry over this exemption to the surviving spouse.
The
use of a By-Pass Trust enables you to maximize your estate tax exemption and in
the case of New York estate taxes will permit you to pass $2,000,000 tax free
of New York Estate Taxes directly to your children and save approximately
$100,000 in New York Estate Taxes.
Although
the present Federal estate tax law does provide for a carry
over of this exemption, this law will expire in 2013 and unless it is
renewed the carry over of the $5,000,000 exemption
may not be permitted after 2013 so the use of a By-Pass trust may also protect
your unused federal exemptions as well.