Simple Move Can Boost Your Estate-Tax Exemption – Barron’s

  Listen up, financial advisors: There’s a simple way to help wealthy clients shield more of their estates from taxes, yet it’s often overlooked. Newsletter Sign-up That’s according to InvestmentNews, which looks at what’s known as “portability” for married couples. This strategy allows a surviving spouse to inherit their deceased spouse’s estate-tax exemption, which – thanks to the 2017 tax law – currently stands at $11.4 million for individuals. That means the surviving spouse can pass down $22.8 million to … Continued

Why Your Married Clients Should Probably File Federal Estate Tax Returns

Since none of us are getting out of this alive, you should absolutely make sure that when your spouse passes, that your lawyer files an estate tax return and elects portability. Now, at this point, an advisor might ask, “Who cares about passing on the exemption if the client won’t have to pay the estate tax anyway?” Well, what happens if that surviving spouse comes into a great deal of money? Maybe her advisor (aka you) did a great job … Continued

IRS Makes Executors Ask, ‘Mother May I?’

  Administering an estate is never a joyous task, but it is a necessary one. We usually want to get it behind us as quickly as we can in order to move on with life’s business. Yet for reasons known only to itself, the Internal Revenue Service has just added a new item to an executor’s to-do list in order to settle an estate. In an update to its Frequently Asked Questions on estate taxes, the Service stated that, as … Continued

IRS issues final portability rules for estate tax exemptions

On Friday, the IRS issued final rules governing the requirements for electing portability of a deceased spousal unused exclusion (DSUE) amount to the surviving spouse and the rules for the surviving spouse’s use of the DSUE amount (T.D. 9725). The final rules, which apply to estates of decedents dying on or after June 12, 2015, adopt temporary regulations issued three years ago (T.D. 9593) with a few clarifying changes and remove the temporary regulations. (The temporary regulations still apply to … Continued

The Surviving Spouse Estate Tax Trap – Forbes

  The Internal Revenue Service is poised to release permanent regulations on portability, a newish provision of the estate tax law, and the American Institute of CPAs is requesting that the IRS make the rules more family-friendly. The problem is if you don’t know what portability is and how to elect it, you could be hit with a surprise federal estate tax bill. The AICPA is concerned about estates not being able to take advantage of portability because many executors—and … Continued