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Tue Jan 22, 2013, 07:39 AM

The estate/inheritance tax

With the limit being up to $5,000,000 what is to stop someone from setting up an A/B Trust and splitting $10,000,000 into two $5M halfs?

So essentially this "loophole" raises the amount to $10,000,00...correct?

ON EDIT: http://www.nolo.com/legal-encyclopedia/tax-saving-ab-trusts-29621.html


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Reply The estate/inheritance tax (Original post)
SHRED Jan 2013 OP
dipsydoodle Jan 2013 #1
PoliticAverse Jan 2013 #2
SHRED Jan 2013 #3
safeinOhio Jan 2013 #4

Response to SHRED (Original post)

Tue Jan 22, 2013, 07:44 AM

1. If the tax is based on the value of the estate

how can that be split ? Surely the estate is the estate : the issue is independent of beneficiaries.

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Response to SHRED (Original post)

Tue Jan 22, 2013, 07:51 AM

2. The limit now is $5,000,000 _per person_ so it's $10,000,000 total for a couple.

The article you linked to points out that AB trusts aren't required for most (married)
couples now.

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Response to PoliticAverse (Reply #2)

Tue Jan 22, 2013, 07:58 AM

3. caught that...thanks

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Response to PoliticAverse (Reply #2)

Tue Jan 22, 2013, 08:11 AM

4. Would husband and wife have to die at the same time?

One dies, the other gets the estate, unless they die together?

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