Gorin outlines how, “When a married person dies and passes assets outright or in a qualifying trust for the surviving spouse, those assets receive a new basis (hopefully a step-up instead of a reduced basis) but, due to an unlimited marital deduction, are not subject to estate tax. At the surviving spouse’s death, for estate tax purposes the assets are treated in most ways as passing from the surviving spouse, giving them a new basis again and potentially subjecting them to estate tax.” He continues to describe hypothetical situations regarding married couples in which one partner passes away in order to communicate various situations regarding the decedent’s estate tax exemption.
Download the full article by clicking Steve Gorin, Basis step-up: Planning for married couples.
Posted by Jessica Zhang, Associate Editor, Wealth Strategies Journal.
