A recent Forbes article titled "A Married Couple's Guide To Estate Planning," explores some important considerations when it comes to fundamental estate planning.
As so many of us hoped it would, the fiscal cliff-bridging budget extended the provision known as "portability." As you may know, portability is the ability to pack up the unused tax exemption of the first spouse to pass – that is, their gift/estate tax exemption – and pass it on to the surviving spouse. The surviving spouse doesn't have to worry quite as much about triggering the estate tax when they pass. Why? Because they now have everything they own plus everything their spouse left them and all of it can be sheltered from estate taxes by the estate tax exemptions of both spouses.
The original article has more to say regarding how to secure this portability. It certainly is not automatic! For that matter, portability is also a limited achievement, and a limited kind of protection between married persons.
When all things are considered, you would be well-advised to consult with your estate planning attorneys. There is more to "portability" and proper estate planning than meets the eye.
Reference: Forbes (January 9, 2013) "A Married Couple's Guide To Estate Planning"
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