Hook Law Center Estate Planning Attorney Discusses Estate Tax Portability And How To Claim It | Law Firm Newswire

Hook Law Center Estate Planning Attorney Discusses Estate Tax Portability And How To Claim It

Virginia Beach, VA (Law Firm Newswire) September 24, 2013 – Estates that do not use their entire estate tax exclusion allowance may pass on the remainder to a surviving spouse, but the process is not automatic.

Hook Law Center (formerly Oast & Hook)

Hook Law Center (formerly Oast & Hook)

Called “portability,” the rule was made permanent as part of the American Taxpayer Relief Act of 2012 (ATRA). But Virginia estate planning attorney, Andrew Hook, cautions that an estate tax return must be filed in order for the surviving spouse to claim portability.

“Not every estate is required by law to file an estate tax return,” Hook said. “But the IRS has made it clear that the portability election may be made only after properly and timely filing an estate tax return. No special statement or checking any box is necessary, but the return must be filed. The due date is nine months from the decedent's date of death, but an automatic six-month extension is available.”

For 2013, the first $5.25 million in value of a decedent's estate – the “exclusion amount” – is not subject to federal estate taxes. The figure is indexed to inflation for future years. If the decedent's estate is valued under the exclusion amount, the difference between the two figures is “portable” to their surviving spouse. Thus, when the surviving spouse later dies, their estate is eligible for the standard exclusion amount for that year plus the amount left unused by the earlier estate.

“Prior to the portability rule, people could often achieve similar results, but it took careful advance planning, usually involving creating trusts and re-titling property,” Hook added.

Any rule Congress makes may be undone, and some may wonder if the portability really is permanent.

“Given that alternative strategies exist, and the rule really just makes portability more convenient, I see little incentive for Congress to repeal this law,” said Hook. “I believe portability is here to stay.”

Estate tax returns can be complex and difficult to complete accurately and on time by a grieving spouse, particularly if they had little to do with the couple's finances.

“Following the death of a loved one – or preferably before – I recommend consulting an experienced estate planning attorney, even if you think you have no chance of being subject to estate tax,” Hook cautioned.

Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
Phone: 757-399-7506
Fax: 757-397-1267

SUFFOLK
5806 Harbour View Blvd.
Suite 203
Suffolk VA 23435
Phone: 757-399-7506
Fax: 757-397-1267
http://www.hooklawcenter.com/

  • Make Sure Your Estate Plan and Other Essential Documents are Safe from Disasters
    <p>Hurricane Ian made landfall in the U.S. this past week, leaving a terrible path of destruction in its wake. It is times like these when we must review our plans for when such a disaster should befall us and determine how we can protect that which we prize most. It’s an unfortunate reality that with [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/10/04/make-sure-your-estate-plan-and-other-essential-documents-are-safe-from-disasters-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/10/04/make-sure-your-estate-plan-and-other-essential-documents-are-safe-from-disasters-2/" target="_blank">Make Sure Your Estate Plan and Other Essential Documents are Safe from Disasters</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • As Guardian or Agent, Can I Control Who Visits My Parent?
    <p>If you are the agent under a Power of Attorney or Healthcare Power of Attorney for a parent, you know that your parent has entrusted you with making important financial and medical decisions for them in the event that they become incapacitated. If you parent did not sign these documents before they became incapacitated, you [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/09/27/as-guardian-or-agent-can-i-control-who-visits-my-parent/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/09/27/as-guardian-or-agent-can-i-control-who-visits-my-parent/" target="_blank">As Guardian or Agent, Can I Control Who Visits My Parent?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • Estate Planning for Cryptoassets
    <p>If you have cryptoassets, such as cryptocurrency (i.e., Bitcoin) or nonfungible tokens, it is critical to make sure that your estate plan is up to date.  Without doing so, your appointed Executor, Trustee or agent under a Power of Attorney could not only have trouble accessing those assets, but they may not even know they [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/09/20/estate-planning-for-cryptoassets/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/09/20/estate-planning-for-cryptoassets/" target="_blank">Estate Planning for Cryptoassets</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • No! You Cannot Disinherit Your Spouse
    <p>Many clients come to our office and want to limit an inheritance to, or completely disinherit, a spouse, due to a number of reasons.  It could be that they want to ensure their children are provided for after their death, or that the spouse does not want to disrupt eligibility for public benefits. Regardless of [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/09/13/no-you-cannot-disinherit-your-spouse-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/09/13/no-you-cannot-disinherit-your-spouse-2/" target="_blank">No! You Cannot Disinherit Your Spouse</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>
  • To Shred or Not to Shred?
    <p>Fall is among us and with colder weather fast approaching; we will soon be spending more time inside. What better time to clean out your closets and file cabinets? Typically, you should keep your federal income tax returns and supporting documentation for at least seven years. The Internal Revenue Service provides that “[t]he length of time you should keep [...]</p>
    <p><a class="btn btn-secondary bravehart-read-more-link" href="https://hooklawcenter.com/2022/09/06/to-shred-or-not-to-shred-2/">Read More...</a></p>
    <p>The post <a href="https://hooklawcenter.com/2022/09/06/to-shred-or-not-to-shred-2/" target="_blank">To Shred or Not to Shred?</a> first appeared on <a href="https://hooklawcenter.com/" target="_blank">Hook Law Center</a>.</p>

Tags: , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required