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Old 09-23-2013, 08:46 PM   #21
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Originally Posted by Dimsumkid View Post
The Federal estate tax kicks in at 5.25 million. Going over this amount won't stop any of your assets from transferring over at death, but it will trigger estate taxes at tax return time. You stated you're using JTWROS, if you're near the estate limit, by not having a trust (I'm assuming you're married), you'll be missing out on the 5.25 million tax free transfer.
Didn't portability fix most of this issue? How to Elect Portability of the Federal Estate Tax Exemption
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Old 09-23-2013, 10:08 PM   #22
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Originally Posted by kaneohe View Post
Didn't portability fix most of this issue? How to Elect Portability of the Federal Estate Tax Exemption
I went thru some of the links, here's the piece that define it:

What is an AB Trust?

The couple divides their assets so that each spouse has about the same value of assets in his or her individual name or in the name of his or her Revocable Living Trust. This is an important step and must be done in order for the AB Trust system to work. Many times couples leave their assets in joint accounts and this completely voids the use of the AB Trust system since the joint assets will pass outright to the surviving spouse instead of through the deceased spouse's Last Will or Revocable Living Trust.
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Old 09-23-2013, 10:37 PM   #23
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from the main article:

Portability of the estate tax exemption means that if one spouse dies and does not make full use of his or her $5,000,000 (in 2011, or $5,120,000 in 2012 and $5,250,000 in 2013) federal estate tax exemption, then the surviving spouse can make an election to pick up the unused exemption and add it to the surviving spouse’s own exemption.

What a great concept, right? Well, keep in mind that historically the “AB Trust” system was designed to do what the portability election does.

My impression is that portability does what the AB Trust does w/o having the trust..............provided you do the right thing...............which is to file an estate tax return for the 1st to pass even if no estate tax is due.
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Old 09-24-2013, 09:44 AM   #24
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I would urge you to consult a tax specialist/attorney and do it right. Don't assume anything. And if you ever move to another state...you will may have to do it all over again.

Pay a relatively small amount of money upfront to get the best possible advice. It will save you, or your heirs money and aggrivation in the long run. This has been our experience.
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Old 09-24-2013, 09:47 AM   #25
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i would urge you to consult a tax specialist/attorney and do it right. Don't assume anything. And if you ever move to another state...you will may have to do it all over again.

Pay a relatively small amount of money upfront to get the best possible advice. It will save you, or your heirs money and aggrivation in the long run. This has been our experience.
+1

mrg
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