credit-shelter trust

credit-shelter trust
/ˌkredɪt ˌʃeltə 'trʌst/ noun
money put in trust in order to escape federal estate tax
COMMENT: This type of trust is where someone leaves half his estate to his wife and puts the other half into a trust. After his death, his wife can continue to enjoy the income from the trust, and when she dies her estate and also the trust pass to her heirs tax free.

Dictionary of banking and finance. 2015.

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