Portability can work well in some situations. But, there are many reasons setting up a credit shelter trust instead might be better in some situations. This article examines several reasons a credit shelter trust may result in a better outcome for the client. Read on to learn more. The post Basics of Estate Planning: Portability vs. Credit Shelter Trust appeared first on Northern California Center for Estate Planning and Elder Law.
What is “portability” and how is it elected? This article discusses these topics and explains some shortcuts that can be taken when filing a return only for portability. The post Basics of Estate Planning: Portability appeared first on Northern California Center for Estate Planning and Elder Law.
You should brace yourself for possible taxation when you are devising your estate plan. There are those who are under the impression that the estate tax is only a factor for extremely wealthy people, but this will depend upon your perspective. When you are inventorying your assets to determine your estate tax position, you have to understand the fact that everything that you own personally counts, even your home. We practice law in northern California. Throughout this region, real estate can be extremely valuable, so you have to take this into account. There is an unlimited marital deduction that allows you to transfer unlimited assets to your spouse tax-free, as long as your spouse is an American citizen. You could apply the federal estate tax credit or exclusion to transfer assets to others in a tax-free manner. At the current time, the federal estate tax exclusion is $5.43 million. There can be annual adjustments to account for inflation, so the figure has been rising slightly year