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
When It Actually Makes Sense to Say “No” to an Inheritance
Most people assume that receiving an inheritance is always a good thing, and in many cases, it is. But in my practice, I’ve seen situations where accepting an inheritance outright can create unnecessary tax burdens and long-term planning problems. There’s a lesser-known strategy that can help families make smarter decisions after a loved one passes: it’s called a disclaimer. And in the right circumstances, it can be one of the most powerful tools available in estate and tax planning. What Is a Disclaimer? A disclaimer is a legal decision to refuse an inherited asset. When properly executed, the asset passes ... Read More
Navigating the Shifting Landscape of Estate and Inheritance Taxes: A Yearly Odyssey
Estate and inheritance taxes have long been a complex and ever-evolving aspect of financial planning. What might have been a sound strategy one year may be rendered obsolete the next, thanks to changes in federal and state tax laws. In this blog post, we'll explore the dynamic nature of estate and inheritance taxes, including how they can change yearly, the impact of retroactive estate tax laws, and the importance of staying informed to navigate this intricate landscape. The Ever-Changing Landscape States in the U.S. retain the authority to set their own estate and inheritance tax laws, leading to a patchwork ... Read More
