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Old 06-03-2016, 05:16 AM   #61
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there are no taxes between spouses but when two spouses are alive they can each pass up to the estate tax limit an equal amount to other heirs .

when one dies and everything goes to the spouse now there is only that spouses limit that can go to heirs .

irrevocable trusts can preserve both party's amounts and pass 2x the assets to other heirs upon the death of the surviving spouse
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Old 06-03-2016, 05:21 AM   #62
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Never mind. I just went to a prominent legal site for my own state and this is what I found:

"All assets left to a surviving spouse pass free of federal and state estate taxes. This is true for both opposite sex and same sex couples who are legally married."

So it seems that any assets (outside of a home maybe) titled as TOD where the spouse is the primary beneficiary would pass free of any estate taxes. This would make the TOD approach a cheaper and less expensive option over a trust as TOD titled assets also avoid probate. I also learned that the TOD approach will also trump any information that is different in a will. I think years ago the TOD approach was not available which is why trusts were popular plus I am sure attorneys pushed them as they would make money drawing them up
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Old 06-03-2016, 05:23 AM   #63
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Never mind. I just went to a prominent legal site for my own state and this is what I found:

"All assets left to a surviving spouse pass free of federal and state estate taxes. This is true for both opposite sex and same sex couples who are legally married."

So it seems that any assets (outside of a home maybe) titled as TOD where the spouse is the primary beneficiary would pass free of any estate taxes. This would make the TOD approach a cheaper and less expensive option over a trust as TOD titled assets also avoid probate. I also learned that the TOD approach will also trump any information that is different in a will. I think years ago the TOD approach was not available which is why trusts were popular plus I am sure attorneys pushed them as they would make money drawing them up
many states will not let you use tod's for real estate . some states do have quick claim deeds but others like ours , ny , either require a trust or probate . minors can't inherit anything directly and need provisions in a trust . in some states brokerages can't transfer on tod accounts .

don't forget these are the benefits of a revocable trust . an irrevocable trust does things that multiply estate tax exemptions , give protection from creditors and medicaid planning as well as protect assets when spouses remarry
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Old 06-03-2016, 05:31 AM   #64
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there are no taxes between spouses but when two spouses are alive they can each pass up to the estate tax limit an equal amount to other heirs .

when one dies and everything goes to the spouse now there is only that spouses limit that can go to heirs .

irrevocable trusts can preserve both party's amounts and pass 2x the assets to other heirs upon the death of the surviving spouse

The second part you stated is true but the first part I believe is incorrect. Everything I am reading indicates that between spouses there is an unlimited marital exemption and this applies to the situation where both spouses are living or one has died.

For example , both spouses are living and can pass tens of millions of dollars back and forth with no gift tax implications. Or... one spouse dies and the surviving spouse acquires assets previously held in the dead spouses name for tens of millions of dollars. These assets also pass completely free from any federal or state estate taxes. 100%. Especially since now the estate and gift tax are unified. Only if the assets are gifted or left to a child or stranger , etc. would the gift/estate tax be implemented.
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Old 06-03-2016, 05:34 AM   #65
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you are not following .

if the fed allows 5 million or so to pass estate tax free to heirs (not spouse ) , a married couple via irrevocable trusts can pass to their kids 10 million dollars . between themselves it is unlimited

if one spouse dies and there is no trust now the surviving spouse has 10 million but can only pass estate tax free about 5 million to kids. anything over gets taxed . the irrevocable trusts preserve each persons limits and multiply them so the 10 million can pass to the kids . .
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Old 06-03-2016, 05:39 AM   #66
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No I understand. I missed your first few words where you said " there are no taxes between spouses." I understand the deduction is cut in half when there is only 1 surviving spouse as far as leaving assets to children.

BTW since we are both up this early and online at the same time how about we just call each other and chat?
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