The 2010 tax law gives married couples a wonderful new tax break. Depending on whom you talk to, it could be a gold mine or a loss leader for lawyers.
Here’s what I mean: Until the end of this year — and longer than that if Congress makes the current law permanent — we can each transfer up to $5.12 million tax-free, during life or at death. That figure is called the basic exclusion amount.
Starting in 2011, widows and widowers can add any unused exclusion of the spouse who died most recently to their own. This dramatic change enables them together to transfer up to $10.24 million tax-free.