Portability, now permanent, is a fundamental change in estate planning. We suggest that you implement the following five action items:
- Identify Clients with Deceased Spousal Unused Exclusion (DSUE) Amounts
- Use DSUE Amounts by Gift
- Authorize Portability Election in Will or Revocable Trust
- Consider Restructuring Existing Plans to Allow for Possible Use of Portability
- Add Mechanism to By-Pass Trusts to Attain Basis Adjustments
Taking these steps will help to provide your clients with potential estate and income tax savings. Further details are provided below.