Estate Tax Strategies for Married Couples

February 23rd, 2011

With the estate tax once again resurrected on both federal and Illinois levels, completely new estate tax strategies are taking shape. Married couples with a taxable estate have a distinct advantage with the current estate tax law in place, but only if certain criteria are met. If you have a married living trust, don't skip your yearly estate plan review with your attorney. Revising your living trust could be the key to brilliantly executed estate tax strategies. Here's one reason:

In recent years, married couples have been commonly encouraged to create one A/B family trust in order to maximize their estate tax strategies. After the death of one spouse, the widow is required to revisit his or her attorney's office to divide the estate into two A/B trusts. Neglecting this step was risky and could have potentially led to a loss in tax benefits, even litigation.

But now, thanks to current tax break opportunities, our law office of Dean R. Hedeker, Ltd. offers a Disclaimer Trust, which simplifies this process immensely. By creating special trust language in your existing living trust, we can create more flexibility for your family.

With a Disclaimer Trust, a person you designate has the flexibility to decide whether they will be required to split the estate into two trusts at the time of the first death or, if they feel more comfortable, to leave the assets in one trust. Completely new tax strategies like this one can save your family valuable time and money.

If you are a current Dean R. Hedeker, Ltd. client, contact us for more specific details. If you're not a client yet, please contact us for a free consultation to decide whether or not changing your estate tax strategies will benefit your family.