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Given the potential reduction of the estate tax exemption in 2026, Hallock & Hallock recommends considering whether filing for portability makes sense if you have a spouse who died within the last ...
While their combined assets are exempt from federal estate tax, Illinois levies its own estate tax on assets exceeding $4 million. Without an AB trust, $5 million would be subject to Illinois ...
The portability exemption is claimed by filing Form 706, specifically Part 6 of the estate tax return. Whether the personal representative has an obligation to make the portability election is presently unclear.
The post Understanding Portability of the Estate Tax Exemption appeared first on SmartReads by SmartAsset. Estate planning could seem daunting, but it can also be made simpler by understanding key ...
Therefore, if the taxpayer's sister were to sell the house for $100,000, she would not have to pay any income tax because the sales price ($100,000) minus her stepped-up basis ($100,000) would be a capital-gain income of zero. See the explanation under "Rationale for stepped-up basis" (below) for an explanation of why the Tax Code would do this.
QTIP trust is a type of trust and an estate planning tool used in the United States. "QTIP" is short for "Qualified Terminable Interest Property." A QTIP trust is often used in order to take advantage of the marital deduction and still control the ultimate distribution of the assets at the death of the surviving spouse.
The federal estate tax exemption — also referred to as the estate tax exclusion — is $11.7 million per person as of 2021. A married couple can effectively leave behind $23.4 million combined.
The U.S. generation-skipping transfer tax (a.k.a. "GST tax") imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren. [1]