Portability: One of the Most Overlooked Estate Tax Elections
Many married couples assume that if everything is left to the surviving spouse, no additional estate tax planning is necessary. While that may be true in the short term, failing to make one important election after the first spouse dies could cost a family millions of dollars in unnecessary federal estate taxes later. That election is called portability. What Is Portability? Portability allows a surviving spouse to inherit the unused portion of a deceased spouse's federal estate and gift tax exemption. In simple terms, if the first spouse dies without using all of their federal exemption, the surviving spouse may ... Read More
Understanding the Annual Gift Tax Exclusion and Lifetime Exemptions
High-net-worth families often hear about the “gift tax,” but the rules governing wealth transfers are more nuanced than many people realize. Two key components of the federal transfer tax system are the annual gift tax exclusion and the lifetime estate and gift tax exemptions. Understanding how these two tools work together can create significant opportunities to transfer wealth to the next generation while minimizing taxes. The Annual Gift Tax Exclusion Each year, individuals can give up to $19,000 per recipient (the 2026 amount, adjusted periodically for inflation) without triggering gift tax or using any portion of their lifetime exemption. These ... Read More
