To Bypass or Not to Bypass, That is the Question: Using a Formula General Power of Appointment Clause to Address New Estate Planning Uncertainties (“California Trusts and Estates Quarterly” – Spring 2011)

Due to changes to the federal estate tax rules, estate planners today face a set of additional considerations regarding whether a bypass trust is necessary for a couple uncertain to face estate taxes at the surviving spouse’s death. The use of a formula general power of appointment may permit a couple to maximize their tax benefits by ensuring the lowest estate tax possible and maximizing the use of the step-up in income tax basis at death. View article