Credit Shelter Trust (or By-Pass Trust or A-B Trust) - A Credit Shelter Trust that is established in a revocable trust or in someone's will (i.e., a testamentary trust) can be used to receive assets upon an individual's death. This trust protects or “shelters” the amount of property that you can own without paying federal estate tax. The trust is funded with the amount of the Applicable Exclusion Amount (also commonly known as the “unified credit”), which is $2,000,000 for 2006, 2007 and 2008. [Please note that the Applicable Exclusion Amount is scheduled to increase to $3.5 million for 2009.]