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RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 36980
Experience:  Texas lawyer for 30 years in Estate law
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Re; Present Fed. Inheritance laws: $5 million dollars tax

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Re; Present Fed. Inheritance laws: $5 million dollars tax free per person. Hypothetical
question: Husband has $1million first to die. Wife second to die (at a later date) has
$7 million dollars and gets the interest from the husband's $1 million for the rest of her
life and then goes to the children at time of her death. Can the estate at the time of their
deaths QUALIFY for the $10 million tax exempt law. "Portability"?
Thank you.

Both husband and wife have living trusts.

Thanks for your question and good afternoon.You are correct here that under the present law a couple has a combined $10.5 million exemption.The $1million here counts against the $10.5 million leaving $9.5 million portability for the remaining spouse.As long as the estate is not over that when she deceases then there is no tax due.The only caveat here is that this is for 2013 nobody knows if the law will change in the future.

 

Unless it does under your scenario no tax is due.

Here is reference..go down to portability..
http://www.nolo.com/legal-encyclopedia/federal-gift-estate-law-2013-beyond.html

It has been my pleasure to assist you today.Please let me know if you have more follow up.Thanks again.

 

I hope that you will be so kind as to leave a positive rating. If you do have any additional questions about my answer please click the "Continue Conversation Link" so I can provide you with a fully satisfactory answer. Please be aware that any rating of 1 or 2 is reflected as a negative rating and I receive no credit for my answers.

 

 

 

 

 

This communication does not establish an attorney-client relationship.Information provided here is not legal advice. Rather it is simply general information.

 

RayAnswers and other Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

RayAnswers,


I just want to add to my top rating for you that I particularly appreciated


your answer in 101 language, easily understood. I still need to check to see of the State of Illinois $2 million inheritance limit has been factored


into the Trust Documents. Will have to do this at some point.


 


Again, my thanks. XXXXX get you again when I have a question! Now


where can I put in my rating for you?

Thanks for the rating.If you have future questions post them for Ray I will be glad to help.Thanks again.