For married couples with combined taxable estates over the Oregon estate tax exemption, the use of a trust at the death of the spouse can minimize or eliminate death taxes significantly.
Many couples may feel that they do not have to explore methods of minimizing death taxes because their estates are not likely to exceed the combined federal gift and estate exemption. However, a quick listing of your property that might be subject to death taxes may convince you to decide to do some planning now.
These Assets Are Typically Included in Your Gross Estate:
- Investment Accounts
- Bank Accounts
- Stocks and Bonds Held in Certificate Form
- U.S. Savings Bonds
- Personal Effects – Including furniture and furnishings; clothing; jewelry; antiques; collectibles; art work; books; guns; computers; TVs and the like.
- Automobiles
- Monies owed to you
- Life Insurance
- Retirement Accounts
- Closely Held Business Interests
- Real Estate
- Certain Trust Assets
- Taxable Lifetime Gifts
- Certain Transfers Made Within 3 Years of Death
A Disclaimer Trust is a useful “Wait and See” option. Each spouse’s Will provides that upon the first spouse’s death, all assets in that spouse’s name will be distributed to the surviving spouse, unless the surviving spouse elects (within 9 months after the deceased spouse’s death) not to take the share of the estate left by the deceased spouse.
This Disclaimer option gives the surviving spouse a second chance to decide whether or not the combined estates are large enough to warrant the creation of the trust.
A Disclaimer Trust is only available if both spouses are U.S. citizens. If the surviving spouse is not a U.S. citizen, then more restrictive rules apply and different planning will be required.
Given the complexity of these issues I am happy to schedule a one-on-one to discuss this in more detail. Schedule an appointment with me today!