Home / Articles / Married with a large estate? Why you still need a credit shelter trust

Married with a large estate? Why you still need a credit shelter trust

June 17, 2015

Share:

Even though portability now allows married couples to use up both spouses’ estate tax exemptions without having to make lifetime asset transfers or set up trusts, this “easier” path isn’t necessarily the better path. For couples with large estates, making lifetime asset transfers and setting up trusts can provide benefits that exemption portability doesn’t offer.

With portability, if one spouse dies and part (or all) of his or her estate tax exemption is unused at death, the estate can elect to permit the surviving spouse to use the deceased spouse’s remaining estate tax exemption. But making the portability election doesn’t protect future growth on assets from estate tax like applying the exemption to a credit shelter trust does.

Also, the portability provision doesn’t apply to the GST tax exemption, and some states don’t recognize exemption portability. Credit shelter trusts offer GST and state estate tax planning opportunities, as well as creditor and remarriage protection.

If you’d like to learn more about credit shelter trusts or other estate planning strategies for your situation, please let us know.

© 2015

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

NYDFS Cybersecurity Checklist

Article

2 Min Read

NFT Considerations for Not-for-Profit Organizations

Article

2 Min Read

Year-End Spending Package Tackles Retirement Planning and Conservation Easements

Article

2 Min Read

2023 Tax Calendar

Article

2 Min Read

Ohio Governor Mike DeWine Appoints Amr Elaskary of Clark Schaefer Hackett to the Accountancy Board of Ohio

Article

2 Min Read

Zach Gubser Rejoins Clark Schaefer Hackett in Shareholder Role

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.
  • Hidden
  • This field is for validation purposes and should be left unchanged.