Frederick J. Kramer
Attorney and Counselor at Law
Elder Law and Estate Planning
(516) 293-4747
UNIFIED CREDIT TRUST
In
the case of married couples, as your wealth grows you can always revise simple
Wills or Living Trusts to incorporate the Unified Credit Trust clauses. The Unified Credit for each of you is the
equivalent in estate value of currently $1,500,000 each. This federal estate tax exemption level is
increasing gradually to $3,500,000 by the year 2009. The following chart shows the federal
increase per year.
The
Federal estate exemption levels are gradually being increased as follows:
YEAR ESTATE EXEMPTION
2005 1.5 Million
2006 2 Million
2007 2 Million
2008 2 Million
2009 3.5 Million
2010 No limit: No
Estate Taxation
2011 $ 1 Million
Therefore,
if you died in the year 2005 or thereafter, up to $1,500,000 can pass through
your Unified Credit Trust under your Will, free of estate tax upon your death,
and free of estate tax upon your spouse’s subsequent death, and vice
versa. Any assets above and beyond the
$1,500,000 unified credit amount (in year 2005) which are not held by the
unified credit trust will pass to the surviving spouse estate tax free due to
the unlimited marital deduction. There
should never be an estate tax due on the first to die.
Upon the death of the surviving spouse, the
unified credit trust assets will pass to the children free of probate and
estate taxes.
The information
presented at this site should not be construed to be formal
legal advice nor the formation of a lawyer/client relationship.
All website content ©
2005, Frederick J. Kramer, Esq.