Question: Hilda wanted to know how much her children would be saving if she set up a bypass trust for $300,000 rather than giving it directly

Hilda wanted to know how much her children would be saving if she set up a bypass trust for $300,000 rather than giving it directly to her husband. She had an illness that made it likely that she would be the first to die. Assume she and her husband each had over $6 million in assets and no change in the amount over time, as well as an estate tax rate of 40 percent. What would her savings be?

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