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General Discussion

SHRED

(28,136 posts) Tue Jan 22, 2013, 08:39 AM Jan 2013

0

The estate/inheritance tax

With the limit being up to $5,000,000 what is to stop someone from setting up an A/B Trust and splitting $10,000,000 into two $5M halfs?

So essentially this "loophole" raises the amount to $10,000,00...correct?

ON EDIT: http://www.nolo.com/legal-encyclopedia/tax-saving-ab-trusts-29621.html

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4 replies

= new reply since forum marked as read

Highlight:

The estate/inheritance tax (Original Post) SHRED Jan 2013 OP

If the tax is based on the value of the estate dipsydoodle Jan 2013 #1

The limit now is $5,000,000 _per person_ so it's $10,000,000 total for a couple. PoliticAverse Jan 2013 #2

caught that...thanks SHRED Jan 2013 #3

Would husband and wife have to die at the same time? safeinOhio Jan 2013 #4

dipsydoodle

(42,239 posts)

1. If the tax is based on the value of the estate

Reply to SHRED (Original post)

Tue Jan 22, 2013, 08:44 AM

Jan 2013

how can that be split ? Surely the estate is the estate : the issue is independent of beneficiaries.

PoliticAverse

(26,366 posts)

2. The limit now is $5,000,000 _per person_ so it's $10,000,000 total for a couple.

Reply to SHRED (Original post)

Tue Jan 22, 2013, 08:51 AM

Jan 2013

The article you linked to points out that AB trusts aren't required for most (married)
couples now.

SHRED

(28,136 posts)

3. caught that...thanks

Reply to PoliticAverse (Reply #2)

Tue Jan 22, 2013, 08:58 AM

Jan 2013

safeinOhio

(32,658 posts)

4. Would husband and wife have to die at the same time?

Reply to PoliticAverse (Reply #2)

Tue Jan 22, 2013, 09:11 AM

Jan 2013

One dies, the other gets the estate, unless they die together?

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