Understanding Estate Tax Portability: 3 Commonly Asked Questions

It used to be quite common for people to come to estate planning attorneys because they were worried about the estate tax. While the estate tax still exists, it is a much less significant concern than it was even a few years ago. This is primarily because of two reasons. First, the estate tax exemption limit has been set fairly high. Second, the exemption limit is effectively doubled for married couples because of a concept known as portability. To better understand estate tax portability and why it matters, let us look at some commonly asked questions about this concept. Question 1. What, exactly, is the estate tax? The estate tax is the federal tax that applies to the property left behind by a deceased person. This property is collectively known as an estate. When you die, the value of your estate will determine if you have to pay an estate tax. If your estate is in excess of the individual exemption limit, your estate will have to pay taxes. Question 2. What is the estate tax exemp


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