Husband and wife may be able to use federal tax exemption twice
Federal exemption will increase from $2.0 million in 2009 to $3.5 million by 2009, and the federal estate tax repealed in 2010. Unless congress changes the law, the federal exemption will be $1.0 million in 2011.
Allows spouse to “disclaim” and decide how much to fund bypass or credit shelter trust within 9 months of death
Spouse cannot take benefit of asset before disclaimer is filed
Wills Or Trusts With Credit Shelter Provisions
Formula puts portion of estate in trust for spouse who may receive income until death plus principal as needed for health, education, maintenance and support. Upon spouse’s death it will be distributed to children.