My question is regarding claiming portability on a 706.
In the past when filing a 706 for the first to die of a married couple that had a A B Trust, we would split the assets in half. Half the assets would go into Trust B for the decedent, using their personal exemption. The other half going into Trust A of the surviving spouse.
When the surviving spouse died Trust B would not be included in the estate of surviving spouse and would go to named beneficiaries.
Under current law and with the exemption being 11.7 million dollars, A B Trust are now non existent.
My question is in filing a 706 under current law and preserving all of the 11.7 million exemption, what is the best way to do this?
I believe the best way to do this is not how we have done this in the past, but for the first to die spouse to utilize to its fullest the unlimited Marital Deduction and give everything to surviving spouse, thus preserving 100% on the deceased 11.7 million exemption for portability election. This would then make available at the surviving spouse's death potentially 23.4 million dollars to reduce estate taxes with.
I would appreciate some input into this to make sure this would be the proper way to file a 706 under current law.
Thanks
Jim
Neilson Tax & Financial Group James T. Neilson, EA
Phone
949-837-0514 Fax
949-837-2922 23482 Peralta Dr Ste B-1
Laguna Hills, CA 92653