Estate Tax Exemptions

Don’t let your spouse’s estate tax exemption die with them!

No estate tax return is due for estates below the soon to be reduced $5 million tax exemption threshhold. Without filing a return, however, a married couple can lose the benefit of the excess exemption, because it does not automatically carry over to the surviving spouse. And even that will no longer be an option when this “portability” expires at the end of 2012. Fortunately, the risk of not enjoying the full amount of both spouses’ exemptions can be managed by careful advance trust planning with regular updates for changes in the law.