Exemption Trust

Business, Legal & Accounting Glossary

Definition: Exemption Trust



Full Definition of Exemption Trust


A bypass trust funded with an amount no larger than the personal federal estate tax exemption in the year of death. If the trust grantor leaves property worth more than that amount, it usually goes to the surviving spouse. The trust property passes free from estate tax because of the personal exemption, and the rest is shielded from tax under the surviving spouse’s marital deduction.


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Exemption Trust. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. October 25, 2020 https://payrollheaven.com/define/exemption-trust/.
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Exemption Trust. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/exemption-trust/ (accessed: October 25, 2020).
American Psychological Association (APA):
Exemption Trust. PayrollHeaven.com. Retrieved October 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/exemption-trust/

Definition Sources


Definitions for Exemption Trust are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 0 Views.