Marital Estate Planning After Tax Reform

The Tax Code changes at the end of 2012 transformed the thinking about estate planning for a married couple: portability of gift and estate tax exemption became a permanent fixture, as did an inflation-adjusted $5,000,000 exemption. Then at the end of 2017, the Tax Cuts and Jobs Act doubled the inflation-adjusted exemption to $10,000,000, making the federal gift and estate tax a non-issue for all but the wealthiest Americans. At the same time, sixteen states still have some form of state estate tax, and Massachusetts has one of the most burdensome such taxes. These considerable changes bring a new focus to marital estate planning. With potential income tax savings more relevant than ever, in many cases estate inclusion and a resulting basis step-up is more valuable than sheltering assets from estate tax at the surviving spouse’s death.

This program focuses on how to plan for a married couple to take advantage of portability of exemption, and the opportunity for basis step-up at the survivor’s death, without giving up all the potential benefits of a conventional estate plan.