We have been married for 30 years. Is it better to create a survivor trust and a bypass trust or just a survivor trust so that when one of us die, all the asset will go to the survivor? I understand if you have a by pass trust, then the survivor is only allowed to have the income from the by pass trust and won't be able to touch the principal. If everything goes into the survivor trust, does the survivor has to pay taxes. Does the children have to pay taxes on the inheritance who inherits after the survivor's death?