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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (49208)	2/14/2008 11:18:31 AM
From: Travis_Bickle	Read Replies (3) \| Respond to of 543174

There is a very simple way to leverage the 2m into 4m. Let's assume you are worth 4m, assume spouse worth 0 for sake of illustration, assume 1 child ... Leave $2m outright to your spouse ... anything left to your spouse creates a 100% deduction ... so the bequest counts as 0 for estate tax purposes. The other $2m you leave in trust for your spouse ... she has full use and control of funds as trustee ... at her death it goes to your child. Through this trust you use up the current $2m per person exemption. Upon spouse's subsequent death, the $2m you left her outright goes to your child, using up her current $2m exemption ... and the $2m in trust goes to your child ... however the trust doesn't count as your wife's money for estate tax purposes ... viola you have transferred $4m to your kid without a penny of estate tax ... but only works if the two of you are legally married at the time of your death. Very common estate plan, doesn't cost much at all to set it up.