Portability vs. Credit Shelter Trust: Which Should Your Clients Use?

In the Press · March 17, 2014

The American Taxpayer Relief Act of 2012 (ATRA), P.L. 112-240, made
permanent the concept of portability, a game-changing concept that
allows a deceased spouse’s unused federal gift and estate tax exemption
to be used by the surviving spouse. Portability of the deceased
spousal unused exclusion amount is important for all married
clients—regardless of their net worth.

When making estate planning decisions, clients need to consider
whether to:

  • Rely on portability
  • Implement the traditional
    credit shelter trust; or
  • Use a hybrid approach where the credit
    shelter trust is drafted and established but not currently funded.

Click here to read Patricia’s complete article as it appears in CPA Insider.