Estate Tax Audit… 30 years later?
Since 2012, when Congress passed the American Taxpayer Relief Act, “portability” has been the heart of many estate plans for married couples. Portability allows a surviving spouse to use the deceased spouse’s unused estate tax exclusion (currently $5.49 million). A common estate planning goal of a married couple is to take full advantage of both spouses’ estate tax exclusions. Typically, this is done by funding a Family Trust (also sometimes called a Credit Shelter Trust or B Trust) at the death of the first-to-die with the exclusion amount and leaving the rest to one’s spouse (outright or in trust).