Tax exemption trusts provide readily available funds that can be leveraged to transfer more wealth efficiently.

Leverage At Death

A Credit Shelter Trust (CST), also referred to as a B-Trust, is funded at death to shelter a certain amount from estate taxes (for 2011, the amount is $1,000,000). The trust can be leveraged with life insurance on a surviving spouse to transfer more wealth to heirs.

Leverage During Lifeftime

A Lifetime Exemption Trust can be funded during lifetime with up to $1,000,000 of assets that can be sheltered from gift taxes. It can be leveraged with life insurance.