Case Studies – Don't Let This Happen To You
Wills and Trusts Created During Second Marriages
Wills and Trusts Created Before Second Marriages
Providing for Disabled Children
Creating Estate Planning Documents on Your Own
On December 22, 2017, President Trump signed into law PL 115-97, commonly referred to as the Tax Cuts and Jobs Act of 2017 (TCJA), that temporarily increased the $5,000,000 estate and gift tax exclusion amount to $10,000,000 with inflation adjustments starting 2011, for gifts made and estates of those dying after December 31, 2017 and before January 1, 2026. Therefore, the exclusion amount for those dying in 2018 will be $11,200,000. However, on January 1, 2026 the estate tax exclusion amount will revert to about $6,500,000 if new legislation is not passed to increase that amount.
Another benefit allowed by ATRA is the ability of the surviving spouse to claim the Deceased Spouse's Unused Exemption Amount (DSUEA) under the concept called "portability" by timely filing a federal estate tax return for the first deceased spouse within two years after the first death, if such estate tax return is not otherwise required, or within nine months after the first death if an estate tax return is required to be filed for the deceased spouse's estate, which can increase the surviving spouse's "gift and estate tax exclusion amount" from $11,200,000 to as much as $22,400,000 for those dying in 2019, subject to annual increases based on inflation, until January 1, 2026 when the estate exclusion amount will revert to about $6,500,000.