Pending Loss Of Estate Tax Portability A Concernby Larry Parman (Parman and Easterday)
When this year comes to a close we are going to be looking at an entirely different lay of the land when it comes to the estate tax parameters. With this in mind we would like to examine the subject of estate tax exclusion portability.
What does portability mean in this context? The estate tax exclusion is considered to be portable because under current law a surviving spouse can utilize the personal exclusion that was allotted to his or her deceased spouse. This would be in addition to the survivor’s own individual exclusion allotment.
What does this mean to you and your family? What it could mean is an extraordinarily high tax bill if you don’t take the necessary steps to gain estate tax efficiency.
Right now each taxpayer is entitled to a $5.12 million exclusion. So with portability a widow or widower would have a total of $10.24 million that could be passed on in a tax exempt manner.
However, this portability provision is only in effect for the rest of this year. In 2013 the estate tax exclusion is going down to just $1 million per person, and it is no longer going to be portable.
This is the trajectory as it stands right now but of course last-minute changes to laws are always possible, further muddying the waters.
The only intelligent way to proceed given the above is to discuss your unique situation with a licensed professional and be poised to make adjustments as necessary. Should you be interested in doing so, simply take a moment to pick up the phone to arrange for a consultation with a seasoned and savvy Oklahoma City estate planning lawyer.
Experienced estate planning attorneys Oklahoma City OK of the Parman and Easterday offers estate planning and business planning resources to residents of Oklahoma City OK. To learn more about these free resources, please visit www.parmanlaw.com today.