What the American Taxpayer Relief Act of 2012 and Portability Mean to Utah Estate Planners
Utah Bar Journal 27.1 (2014): 20-22
3 Pages Posted: 3 Oct 2015
Date Written: January 1, 2014
Congress avoided the so-called fiscal cliff with the passage of the American Taxpayer Relief Act of 2012 and, in so doing, implemented a number of important tax provisions that affect estate planners for estates of all sizes. The act made several key estate tax provisions permanent including fixing the exclusion amount and tax rates and, most importantly, it made the concept of portability permanent. Portability enables surviving spouse’s to utilize the unused unified credit of their decedent spouse, a strategy that historically required the use of a credit shelter trust. This article also discusses additional ways that portability affects estates large and small and how estate planners may use credit shelter trusts under the current estate tax regime with portability.
Keywords: American Taxpayer Relief Act, Estate Planner, gift tax, estate tax, credit shelter trust
JEL Classification: K34
Suggested Citation: Suggested Citation