Inheritance tax
Should widower with 6 million in total assets make adjustments so his heirs will avoid federal inheritance tax due to Biden’s planned tax changes. He has not filed a 706 which would provide portability, but it’s expensive and time consuming.
Permalink Submitted by Herbert N. Fishman on Sun, 2021-08-01 23:22
Please reply in my e Mail my sight is poor always have trouble proving I’m not a robot
Permalink Submitted by Alan - IRA critic on Mon, 2021-08-02 16:51
Sorry, I only respond in the forum. At this point when any future change to the federal estate tax (federal estate is not an inheritance tax) is unknown, the best thing to do in the meantime is not to let the portability option expire. This must be filed within 9 months of death or can be extended for an additional period. Additional options can be explored after any legislation has been signed into law. If widower has a large IRA, Roth conversions may make sense as the conversion taxes shrink the gross estate and beneficiaries would inherit a tax free Roth.
Permalink Submitted by Bruce Steiner on Sun, 2021-08-08 01:25
File an estate tax return to elect portability. You have to do most of the work anyway to ascertain the assets and the date of death values.