One of the most talked about changes to the Federal estate tax centers on the portability of the decedent spouse’s unused exclusion.  If elected, this new rule allows the surviving spouse to take advantage of the decedent spouse’s leftover exclusion after death.  However, mainstream media has taken the term “portability” and used it to make it sound “out of this world” as if every married couple now has a permanent $10 million exclusion.  This would lead many married couples to believe that estate planning and gifting strategies are no longer needed.

Unfortunately, there are still so many issues that require attention, particularly in regard to properly titled assets between spouses.  Also, a $10 million dollar exclusion doesn’t alleviate potential family issues, such as claims of a former spouse, or children from a previous marriage.  Most importantly, don’t forget that the new $10 million dollar exclusion that we keep hearing about expires after 2012.  So, unless you are planning to die in the next few years, “out of this world” is true, it will literally be gone! 

Give us a call.  We would be honored to assist with your estate plan and keep you from saying, “Houston, we have a problem!”