Bypass Trust Overview
| Bypass Trust | Marital Trust | |
| Amount in trust? | Equal to applicable exemption amount | Amount above applicable exemption amount |
| Taxed at first spouse's death? | No, apply applicable credit amount | No, apply marital deduction |
| Method of transfer? | Trust | Outright transfer or trust |
| Passes to whom on the first spouse's death? | As the first spouse directs | As the surviving spouse directs |
| Taxed at second spouse's death? | No, spouse does not own property at death | Yes, but may apply the applicable credit amount |