The new estate tax law includes a provision called “portability.” It’s officially known as the “Deceased Spouse Unused Exclusion Amount.”
Portability allows married couples to capture two estate tax exemptions without having to rely on the A/B Trust plan discussed in previous essays.
An attorney should be consulted shortly after the death of a spouse to make sure that the deceased spouse’s exemption does not expire.
It’s convenient, and does not require separate accounts for A and B trusts.
It simplifies the tax life of the surviving spouse.
And it preserves the step-up in cost basis when the second spouse dies.
For more information, contact your estate planning attorney.
We welcome your inquiries.